HyperScale Data Centers Featured Article


Hyperscale Datacenters are Transforming the Storage System Market


December 11, 2014

Hyperscale datacenters, a major building block of cloud computing enabling millions of virtual servers to work together to accommodate massively fluctuating workloads, have been flexing their buying power this year. According to Gartner Group, original design manufacturers (ODMs) are actually changing their business models to ship servers directly to hyperscale datacenter customers and the market will reach $4.6 billion in revenues by 2018, accounting for 16 percent of worldwide x86 server shipments.

New data from IDC backs up those numbers, showing that the largest storage system market impact this year came from sales by ODMs to hyperscale datacenters. In fact, revenues from complete and partially built storage systems in this sector grew 22 percent for the third quarter of 2014 making up a whopping 43 percent of all capacity consumed.

The findings are part of IDC’s Worldwide Quarterly Disk Storage Systems Tracker report, which priced overall storage revenues at nearly $8.8 billion for that quarter. But hyperscale datacenters were the biggest disruptors in the space, literally transforming the way ODMs do business. The flexibility and customization afforded by ODMs essentially cuts OEMs almost completely out of the picture when it comes to hyperscale datacenters. This means that cloud and other service providers may design, procure and deploy new storage architectures quickly and affordably to meet their fluctuating needs.

“The relevance and size of these environments has expanded steadily over the last five years and many of these cloud players now offer cloud computing services that compete with on-premise server deployments for workloads, including Web, mobile, big data/analytics, social collaboration, etc.” notes the IDC report. “This increasing market influence and the importance of maintaining a holistic view of the storage market is what ultimately lead IDC to start tracking ODM Direct systems.”

Other interesting findings concern the open networked disk storage market, which is comprised of NAS and non-mainframe SAN, and which reached $5.1 billion in revenue, a 2.1 percent increase year over year. EMC led the market for this segment with 34.1 percent revenue share, followed by NetApp with a 14.7 percent share. EMC also led the segment for external storage systems supplies with 31.4 percent of global sales.

EMC is the overall leader for the worldwide total disk storage systems, followed by HP, Dell, IBM and NetApp. However, the company only experienced 3.5 percent growth in the third quarter from the third quarter of 2013, compared to 22 percent growth for the same timeframe for ODMs selling directly to hyperscale datacenter customers.

If you are interesting in hearing and seeing more about all aspect of how network infrastructures are transforming, ITEXPO East in Miami Beach, January 27-30, 2015 is the place to see the latest technology, and interact with industry peers and subject matter experts including community host Fiber Mountain’s Founder and CEO M.H. Raza who will be giving one of the keynote addresses.




Edited by Peter Bernstein

Article comments powered by Disqus







Click here to share your opinion - What is the "next big thing" to software define in your enterprise or data center?






Featured Blog Entries

Day 4, Cisco Live! 2017 - The Wrap

Day 4 was the final day of our first ever Cisco Live! We had a great show, with many great conversations and new connections with existing and potential end users, resellers, partners and job hunters.

Day 3, Cisco Live! 2017

Day 3 of Cisco Live is history! For Fiber Mountain, we continued to enjoy visits from decision makers and influencers who were eager to share their data center and structured cabling challenges.

Day 2, Cisco Live! 2017

Tuesday was Day 2 of Cisco Live for Fiber Mountain and we continued to experience high levels of traffic, with many high value decision makers and influencers visiting our booth. One very interesting difference from most conferences I attend is that there are no titles on anyone's show badges. This allows open conversations without people being pretentious. I think this is a very good idea.

Day 1, Cisco Live! 2017

Fiber Mountain is exhibiting at Cisco Live! In Las Vegas for the first time ever! Our first day was hugely successful from just about any perspective - from quantity and quality of booth visitors to successful meetings with customers.

Industry News