09 Dec 2019

Backup and HCI Systems Kept the European External Storage Market Afloat in 2019Q3, Says IDC



LONDON, December 9, 2019 — The EMEA external storage systems market in 2019Q3 recorded a slightly negative quarter, with a 1.7% year-on-year decline in value in dollars, according to International Data Corporation's (IDC) EMEA Quarterly Disk Storage Systems Tracker. However, the market increased 2.7% year on year in euros, showing the negative impact of exchange rates.

The all-flash-array (AFA) market represented 39% of total external storage shipments in the region, almost matching hybrid arrays (HFAs), which remained by a whisker the most popular array type, at 40% of total shipments.

On a more surprising side, HDD-only arrays reported a quarterly growth after collapsing for more than two years, pushed by a good performance in the backup space.

"A toxic mix of unfavorable exchange rates and weaker economic growth has dragged down the European external storage market value once again," said Silvia Cosso, research manager, Storage Systems, IDC Western Europe. "As most datacenters have enhanced their capabilities with all-flash arrays, this segment's momentum appears to have slowed down, while cheaper HDD-only arrays still find deployment in the secondary storage market." On the other hand, Cosso said, 2019 so far has proven to be the year when HCI systems went mainstream, pushed by hybrid and multicloud deployments (see IDC's Hyperconverged Systems Drive Growth in the European Infrastructure Market for a deep dive into HCI's success in Europe).



Western Europe

Western European was the worst-performing subregion by market value, declining by 4.9% in dollars but remaining flat in euros with a 0.7% decrease.

For the first time, all-flash arrays matched hybrid flash arrays, at 41% of shipment value, though they recorded a single-digit drop in year-on-year terms.

Storage spending in the region has been impacted by a drop in the U.K., where uncertain macroeconomic conditions appear to have finally taken a toll on datacenter renovation plans. On the bright side, the German market has recovered from its recent slowdown.



Central and Eastern Europe, the Middle East, and Africa

The CEMA storage market performance improved over the previous quarter, with value growing by 8.7% in dollars. Demand for general storage systems was moderate in both subregions, while HCI proliferated in CEE and backup in MEA.

The two opposite storage segments in terms of demand, AFA (serving mission-critical primary workloads) and HDD (serving secondary workloads), recorded solid double-digit growth, while hybrid systems declined but maintained their market share dominance (at 38%). In terms of geographies, the growth in CEE was mostly project-based and triggered by Russia, while the positive boost in MEA came from the larger Gulf and African countries. The performance in the remaining countries was more subdued due to seasonality factors.

"Along with the general expectations for the wider adoption of HCI, NVMe-based systems, and cloud deployments as part of a multicloud strategy, the immediate storage drivers for CEMA in the short to medium term remain catching up with demand for flash in CEE and the large infrastructure projects in the Middle East that are expected to generate growth in the coming quarters," said Marina Kostova, research manager, Storage Systems, IDC CEMA.

Top 5 Vendors, EMEA External Enterprise Storage Systems Value ($M)

Company

2018Q3

2018Q3 Market Shares

2019Q3

2019Q3

Market Shares

2019Q3

YoY Growth

Dell EMC

$677.24

35.57%

$621.48

33.20%

-8.23%

Hewlett Packard Enterprise

$266.88

14.02%

$247.11

13.20%

-7.41%

NetApp

$269.57

14.16%

$244.66

13.07%

-9.24%

IBM

$126.71

6.66%

$157.84

8.43%

24.56%

Hitachi

$127.49

6.70%

$114.69

6.13%

-10.04%

Others​

$435.82

22.89%

$485.89

25.96%

11.49%

Total

$1,903.72

100.00%

$1,871.67

100.00%

-1.68%

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