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Friday, December 01, 2017
HPE and Dell Continue to Lead the Storage and Server Markets

HPE and Dell have maintained their dominant position in the worldwide server and enterprise storage markets in the third quarter.

Server market

HPE/New H3C Group remained first in the worldwide server market with 19.5% market share in 3Q17, as revenue decreased 1.1% year over year to $3.3 billion, accordig to IDC.

Dell maintained the second position in the worldwide server market with 18.1% of vendor revenue for the quarter and 37.9% year-over-year growth to $3.1 billion.

"Hyperscalers continued driving volume demand in the third quarter, with Amazon again leading the charge, as Google and Facebook also began ramping up their server deployments again," said Kuba Stolarski, research director, Computing Platforms at IDC. "While ODMs have largely been the beneficiaries of hyperscaler server demand, some OEMs have now begun to experience significant growth related to the enterprise segment. Dell Inc grew its server business by 37.9%, relying on the strong synergy between its server team and the storage team incorporated from the EMC acquisition. HPE has been pivoting away from hyperscaler business and focusing on the enterprise, hurting year-over-year comparisons in the short term, but showing strength in the enterprise. China has become a strong market for enterprise growth, as evidenced by Dell Inc growing 42.3% year over year to $433 million, and HPE/New H3C Group growing 49.6% to $421 million. In addition, IBM has demonstrated that the enterprise still has space for non-x86 systems, growing the newly refreshed system z business by 63.8% year over year to $673 million."

IBM and Cisco were statistically tied for the third market position. IBM had 6.4% share, with revenue growing 26.5% year over year to $1.1 billion. Cisco had 5.8% share, with revenue increasing 6.9% to $992 million. Lenovo was ranked fifth with 5.1% share and revenue declining 12.6% to $861 million.

Storage market

HPE/New H3C Group held the number 1 position within the total worldwide enterprise storage systems market, accounting for 20.2% of spending. Dell Inc held the next position with a 18.8% share of revenue during the quarter. NetApp finished third with 6.0% market share. IBM and Hitachi finished in a tie for the fourth position, capturing 4.3% and 4.0% of global spending, respectively.

"The enterprise storage market finished the third quarter of 2017 on a positive note, posting strong year-over-year growth and the first double-digit growth in several years," said Liz Conner, research manager, Storage Systems. "All Flash, software-defined, and converged/hyperconverged systems continue to be the driving force for traditional storage vendors. Meanwhile, hyperscalers once again saw event-driven storage requirements lead to strong growth in this segment during the third quarter."

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