International Data Corporation (IDC) released a latest report in which it mentioned that worldwide data storage hardware sales witnessed a boom in early 2015. As per the report, it is expected that more than 28 billion gigabytes of storage were shipped in the first two quarters of 2015.
The report “IDC’s worldwide Disk Storage Systems Market” also confirmed that the revenue grew 6.8% year over year during the said period for worldwide enterprise storage systems as it reached the mark o $8.8 billion.
IDC expects that the overall revenue of these vendors will reach the mark of $23.6 billion, on going with the current growth curve.
Spending on traditional external arrays fell during the quarter while demand for server based storage and hyper-scale infrastructure was up strongly.
Note: Hyper scale storage computing was introduced by Facebook and Google few years back and refers to distributed infrastructures that support cloud and big data processing and can scale to thousands of servers.
The largest revenue growth occurred in the server market, where internal storage sales were up by 23.3%. Internal storage sales benefited from healthy server sales and not just upgrades to existing server infrastructure. Storage systems that were sold directly to hyper scale or internal cloud data center users accounted for 12.6% of total spending in the quarter, up by 22.9% year over year.
External disk storage system revenue fell during the first quarter and was down by 0.6% to $5.6 billion year over year.
High-end storage array sales were up 1.3% from a year ago to $1.5 billion. IDC said the uptick represented a “reprieve from the protracted drop in sales the high-end market has been experiencing.”
Entry-level storage sales grew by 1.1% to $1.4 billion, whereas mid-range arrays, which accounted for the largest portion of the market, declined by 2.4% to $2.8 billion.
The most popular external storage arrays were all-flash models and hybrid flash arrays, which combine NAND flash with hard disk drives. All-flash and hybrid arrays drove the external storage market in the first quarter with 81.6% revenue growth ($403.1 million) and 9.1% ($2.5 billion) year-over-year growth, respectively.