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IDC: Enterprise Storage Market Grew 7.2 Percent in Q4 of 2014

March 09, 2015

A report from IDC has found that the total enterprise storage market grew by 7.2 percent to around $10.6 billion over the fourth quarter of 2014.

"The storage market had a strong finish to 2014," Eric Sheppard, IDC storage research director, said. "Fourth quarter spending on enterprise storage systems was up strongly in most major geographic markets, driven by traditional year-end seasonality, demand for midrange systems that incorporate flash capacity, and continued growth of systems designed for hyperscale datacenters."

Hyperscaling is the ability of data centers to scale up to handle sudden increased demands, in this case for data storage.

EMC was the big winner, accounting for 22 percent of enterprise storage spending. The company’s revenues were nearly $2.4 billion. HP came in second at a 13.8 percent market share and $1.5 billion in revenue.

Dell and IBM ended the quarter in a “statistical tie,” which IDC defines as a less than one percent difference in the revenue share between vendors. The two companies came in at third place at around 9 percent of market share for the fourth quarter.

EMC dominated sales of external storage systems as well with a market share of 32.9 percent for the quarter and revenues of $2.4 billion. IBM came in second place for external storage with 11.7 percent and revenues of $837 million.

IDC said that total capacity shipments were up 43.7 percent to 31.8 exabytes in the fourth quarter. Spending for the year 2014 overall was up 3.6 percent $36.2 billion, and total consumption was up by 43.2 percent to 99.2 exabytes.

The end of the year seems to be a busy ones for data centers, as many of them want to get all their spending out of the way. Since a lot of companies can write off the spending on their taxes, there seems to be an incentive to buy new equipment, including storage, by the year’s end in order to qualify for tax breaks.

Edited by Dominick Sorrentino

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