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Global Storage Revenue Falls

Total worldwide enterprise storage systems factory revenue fell seven percent to US$8.2 billion (A$11 billion) during the first quarter of 2016. Researcher IDC said its latest figures show capacity shipments down 4 percent year over year to 27.8 exabytes during the quarter.

Revenue growth for original design manufacturers (ODMs) that sell directly to hyperscale datacentres was down 39.9 percent to $681 million.

However, sales of server-based storage were up 2 percent during the quarter and accounted for $2.1 billion in revenue.

External storage systems remained the largest market segment, but still fell 3.7 percent.

“On the heels of a busy end-of-year spending cycle, the enterprise storage system market reverted to a familiar trend,” said Liz Conner, storage systems research manager at IDC. “Spending on server-based storage was up; spending on traditional external arrays continues to decline; while the nature of hyperscale business leads it to fluctuate heavily, with that market segment seeing a heavy decline in Q1 2016.”