IDC 18Q2 data showed that servers, switches and storages continue to grow strongly, with DELL and NETAPP leading
“Despite the trade war, the three major components of investment in the data centers continues to increase strongly.”
01 Ethernet switch
According to the latest data released by IDC, the worldwide Ethernet switch market (Tier 2/3) achieved revenue of $6.7 billion in the second quarter of 2018 (2Q18), an increase of 4.8% year-on-year.
IDC released that in the second quarter of 2018, the worldwide server market revenue increased by 43.7% year-on-year to a record $22.5 billion.
Let’s focus on storage. According to IDC, worldwide storage systems market revenue increased by 21.3% to $13.2 billion in the second quarter of 2018.
Revenue generated by the Original Design Manufacturers (ODM) Group, which sold directly to hyperscale data centers, increased by 31.7% year-on-year to $3.3 billion in the second quarter of 2014, accounting for 25.1% of the total investment in enterprise storage this quarter. Sales of server storage increased by 24.9% over the same period last year to $3.8 billion, which accounted for 28.5% of the total investment in enterprise storage. This quarter, the market value of external storage systems was slightly higher than $6.1 billion, an increase of 14.4% from the second quarter of 2017.
The All Flash Array (AFA) market generated revenues of more than $2 billion in the quarter, up 41.7% year-on-year, while Hybrid Flash Array (HFA) market revenue was slightly below $2.6 billion, an increase of 20.8% from the second quarter of 2017.
Sebastian Lagana, a manager of IDC's infrastructure platform and technology research, said: "The strong growth in 2Q18 is due to the ongoing infrastructure renewal cycle, investment in next-generation workloads and the expansions of public cloud services and data-driven initiatives. The growing data economy is an important part of current market growth. Companies of all sizes are investing in platforms that enable them to efficiently ingest, process and disseminate large amounts of data without creating new risks to the business. ”
1. The three major components of the data center--- Ethernet switche, servers and storage, continue to maintain strong growth, indicating that although the world economy has great uncertainty under the trade war, the data economy has attracted a large amount of investment. Meanwhile, Trump's tax rebate policy also allows enterprises to invest money.
2. Storage magnate DELL EMC has maintained rapid growth for two consecutive quarters, which may implicate that the integration is completed and the synergy begins to play a role.
3. The second largest in the storage industry, NetApp continues to maintain rapid growth, which demonstrates that it has achieved fruitful results in the all-flash transition and hybrid-cloud strategy, gradually widening the gap with the second echelon.
4. Due to weak storage growth, HPE and Hitachi show a trend of being the third echelon. The Hitachi strategy has already shifted to IoT and the sluggish growth is understandable. However, after acquiring Nimble Storage, HPE hasn’t exerted the effect of integration, which is a pity.
5. All-flash revenue is $2 billion when external storage revenue is $6.1 billion. That is to say, All-flash revenue accounts for 33%, which means about one-third of revenue comes from all-flash.