Hyperscale data centers fuel revenue growth for enterprise storage vendors

Factory revenue for enterprise storage systems are on a continued upswing due to strong hardware sales to hyperscale data center players.

According to new IDC research, HPE and Dell are tied in terms of enterprise storage provider market share. IBM and NetApp share the third place spot while Huawei and Hitachi are tied for fifth place.

IDC posts that original design manufacturers (ODM) had 2017 revenue growth of 34.3 percent year over year to just under $2.8 billion. Sales of server-based storage increased 23.8 percent during the quarter and accounted for $4.2 billion in revenue. Meanwhile, external storage systems maintained its spot as the largest market segment with the $6.6 billion in sales.

"Investments on enterprise storage systems are increasing at a very healthy pace," said Eric Sheppard, research VP with IDC's Enterprise Infrastructure team. "Infrastructure refresh, a broad market shift towards server-based storage, and rapid expansion within public cloud datacenters are combining to creating strong demand for enterprise storage systems."

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