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External Storage System Sales: IBM, Huawei Grow; Dell, HPE, NetApp Plummet

IDC reports that robust mainframe sales during the second quarter gave IBM a big storage boost, while the recovery of China from the worst of the pandemic pushed Huawei sales up nearly 50 percent. Dell, HPE and NetApp, meanwhile, saw double-digit declines.

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Storage Sales Head To The Cloud

IDC Tuesday reported that total enterprise OEM storage systems revenue for the second calendar quarter of 2020 fell 5.0 percent over last year to just under $6.3 billion. This was despite an increase in external OEM storage capacity shipments of 5.1 percent over last year to 17.1 exabytes.

Contrast this with the sales of ODM (original design manufacturer) storage systems to hyperscale data center providers, which IDC said grew 64.1 percent over last year to reach $47.0 billion, while shipments to that part of the market grew 122 percent to 74.8 exabytes, said Sebastian Lagana, research manager at IDC.

“The volume of storage and servers delivered to the cloud was ridiculous,” Lagana told CRN. ”The majority of ODM storage is going to the cloud.”

While a 5.0 percent drop in worldwide enterprise external OEM storage systems revenue is significant, things could have been worse. IDC three months ago estimated first calendar quarter 2020 external storage systems revenue dropped 8.2 percent. And it‘s a drop that has been happening for some time. Sales for the second quarter of 2019 fell 0.8 percent compared with 2018, IDC said.

Here’s a look at the health of the branded enterprise storage industry and what‘s behind the numbers.

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