Contactez-nous Suivez-nous sur Twitter En francais English Language

Freely subscribe to our NEWSLETTER

Newsletter FR

Newsletter EN



Flash Remains the Only Bright Spot in Another Lackluster Quarter for EMEA External Storage, Says IDC

June 2016 by IDC

Total EMEA external storage systems revenue fell 4.9% year
over year to $1.64 billion in the first quarter of 2016 (1Q16), according to the
EMEA Quarterly Enterprise Storage Systems Tracker 1Q16 from International Data
Corporation (IDC). The capacity shipped in the quarter also dropped 3.5%, indicating
a move away from external storage to internal storage in the region.

For the first quarter, the traditional hard disk array (HDD) segment in EMEA
declined for yet another quarter, falling 23% in user value. The flash market, on
the other hand, recorded another bumper quarter, with all-flash systems growing 96%
annually and hybrid flash arrays growing at a more modest 4% YoY. Bucking the
overall trend of a decline in capacity shipped, flash arrays recorded triple-digit
growth in capacity this quarter, accounting for nearly 60% of total shipments.

"Flash is the only vivid note in yet another lackluster quarter characterized by
unstable emerging markets and a negative seasonality effect," said Silvia Cosso,
senior research analyst, European Storage Research, IDC. "The additional slowdown is
due to the portfolio transition by major vendors, but also due to investments put on
hold as they wait to see how the large acquisitions announced last year will
materialize. On a positive note, the exchange rate effect was milder than in the
previous quarters."

Western Europe

The Western European external storage market continued its decline for another
quarter, falling 4% YoY in 1Q16, due to the continuing downward trend in the
traditional storage segment. Western Europe’s storage revenue exceeded $1.2 billion
and capacity shipped dropped 11% YoY to 2.18 exabytes.

"External storage continued to decline in 2016 in Western Europe as traditional
storage arrays struggle to attract investment," said Archana Venkatraman, senior
analyst, European Storage Research, IDC. "The double-digit drop in capacity in 1Q16
demonstrates how mature Western European organizations are moving to newer, more
intuitive storage technologies such as internal or server-based storage to meet
their capacity requirements. In the next few quarters we expect to see continued
growth in flash storage and a push to internal storage as organizations take an
integrated approach to their infrastructure to take it closer to application needs."

Central and Eastern Europe, the Middle East, and Africa

Although the external storage market in Central and Eastern Europe, the Middle East,
and Africa (CEMA) continued its downward trend (-7%) at the beginning of 2016, there
was some improvement over previous quarters, mostly coming from the Central and
Eastern Europe (CEE) subregion. Regional storage revenue reached $393.7 million and
capacity saw double-digit growth to 740.0 petabytes.

The CEE storage market was impacted by the seasonal effect, with most countries in
the region having a slower quarter than the stronger 4Q15. Russia, however,
benefited from an upturn in investment by government and large businesses in
high-end storage projects, which boosted its growth and brought the region to almost
flat performance.

In the Middle East and Africa (MEA), likewise, only the largest countries —
Israel, Turkey, South Africa, and United Arab Emirates — recorded revenue growth
due to realized infrastructure projects by the public, telecommunication, and
financial sectors, while vendors in the other countries suffered from delayed
projects and still relied on run-rate business. Flash-optimized storage business
continued to thrive, seeing triple-digit growth and accounting for more than 50% of
the market (following suit with Western Europe).

"The coming quarters will be challenging for the incumbents as the CEMA storage
market will have its ups and downs," said Marina Kostova, senior research analyst,
Storage Systems, IDC CEMA. "Market performance will be boosted by a moderate
recovery in the subdued storage demand. At the same time, the pace of adopting new
storage technologies is accelerating and the source of growth is shifting from
traditional storage arrays to alternative solutions. This will be a threat for some
vendors and an opportunity for others, ultimately leading to changes in the regional
competitive positioning."

See previous articles


See next articles

Your podcast Here

New, you can have your Podcast here. Contact us for more information ask:
Marc Brami
Phone: +33 1 40 92 05 55

All new podcasts