The storage market continues to shift away from traditional storage vendors and towards the hyperscalers like AWS (Amazon Web Services), with one exception: NetApp.
IDC this week reported that total second quarter 2017 enterprise storage sales grew by 2.9 percent compared to the same period of 2016, reaching $10.8 billion. That modest growth was the first overall growth the industry has seen for several quarters, IDC reported.
However, the growth in the business has shifted away from the traditional leaders in the business, with NetApp the only traditional vendor to see a significant increase in storage sales. The original design manufacturer, or ODM, part of the market grew by 73.5 percent year-over-year.
Total worldwide storage capacity shipped in the second quarter rose 16.5 year-over-year to 65.3 exabytes, IDC reported.
IDC also estimated sales of all-flash storage arrays reached over $1.4 billion in revenue during the quarter, up 37.6 percent year-over-year. Sales of hybrid flash arrays rose 19.6 percent to reach $2.1 billion for the quarter.
IDC breaks its quarterly storage sales results into two types. The worldwide total enterprise storage systems market, which includes storage sold both as a part of a server and external to the server, saw 2.9-percent year-over-year growth to $10.8 billion.
It was this part of the market where the ODM direct vendors saw their 73.5-percent year-over-year growth, as the servers installed in the hyperscaler data centers typically include internal storage.
The second type is the worldwide external enterprise storage systems market, which only counts storage sold external to the server. Here, total revenue fell 5.4 percent to $5.3 billion.
The enterprise storage market is going through some major shifts, said Liz Conner, research manager for Storage Systems at Framingham, Mass.-based IDC, in a prepared statement.
"Traditional storage vendors continue to expand their product portfolios to take advantage of the market swing towards all-flash and converged/hyper-converged systems. Meanwhile, hyperscalers saw new storage initiatives and event-driven storage requirements lead to strong growth in this segment during the second quarter," Conner said.