IHS Markit’s data center storage equipment market tracking report shows that in the second quarter of 2019, the global revenue of the server external storage market decreased by 4% year-on-year, and the unit shipment decreased by 10%, which is not as strong as that in 2018.

Compared with the previous quarter, storage revenue increased by 3% and unit revenue increased by 9% in the second quarter of 19. However, these increases reflect the normal seasonal pattern and do not represent a strong rebound in weakness in the first quarter of 19 years.

The quarterly sales of AFA all flash storage decreased, but the sales based on nvme increased. In the whole AFA storage field, the revenue decreased by 1.7% quarter on quarter, while the year-on-year revenue increased by 21% in the second quarter of 19.

The global revenue of data center storage will increase from $40 billion in 2019 to $62 billion in 2023, with a CAGR of 9%.

Although the forecast for the next few quarters can not reach the sales volume in 2018, the long-term prospect of the market is still optimistic. Due to the digital transformation and the continuous growth of data intensive workloads such as the Internet of things, video streaming, industrial automation and artificial intelligence, the demand for storage will continue to grow.

In the second quarter of 2018, shipments of all flash performance array units were flat compared with the first quarter of 2016. This flatness shows that all leading flash memory manufacturers are trying to expand shipments in the second quarter.

In the second quarter of 2019, NetApp’s all flash revenue decreased by 24% year-on-year, and its overall storage market share decreased by 2 percentage points in the second quarter of 19.

In 2018, the data center storage business experienced a wide transition from high-performance rotating disk technology to full flash storage to improve the performance of storage workload. The average selling price of products associated with all flash memory is much higher, resulting in stronger revenue growth than the unit growth in 2019. However, these same higher average selling prices also translated into large capital expenditure investments, which led large enterprises to suspend purchases in the second quarter of 19, especially in high-end arrays. In the long run, as the price of flash memory continues to decline, the transition to flash memory will continue next year.

Other data center storage highlights

• by 2023, the total storage capacity of server external data center will reach US $62 billion, higher than US $40 billion in 2018, with a five-year CAGR of 9%.

• revenue in the full flash performance array category increased by 1.8% year-on-year in the second quarter of 19, while mixed performance arrays decreased by 4.8% year-on-year, while capacity optimized arrays decreased by 21.6% year-on-year.

• Dell EMC maintained its leading position in the array storage market revenue, accounting for 29% in the second quarter of 19. The white box manufacturer obtained the position of ≠ 2 with 22% share. HPE exchanged seats with NetApp, making HPE occupy 3 places with 7%.

• the report predicts that white box manufacturers will reach 30.5% of revenue in 2023, higher than 27% in 2019. Among them, products certified by open compute project will increase to 10% and traditional storage will decrease to 59%. By 2023.

• it predicts that the revenue share growth of cloud service providers will slow down, but will still account for 43% in 2023, of which the share of telecom service providers will rise to 12% and the share of enterprises will fall to 45%.

Suppliers tracked in the report include Dell, EMC, NetApp, HPE, IBM, Huawei, Lenovo, pure storage and Hitachi.


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