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EMC, HP, Dell Lead Stumbling Storage Market

Channel partners who sell storage services probably already have noticed that times are a little tough.

Dell’Oro Group confirmed that inkling in a new report (purchase required), noting that the overall storage-systems market is down 3 percent year over year, to $9.4 billion. External storage systems slipped 1 percent over the same period.

“The architecture of the data center is experiencing rapid changes, which in turn are changing the face of the storage industry,” said Chris DePuy, vice president at Dell’Oro Group. “… Our research shows high unit growth of Direct Attached Storage and accelerated growth of White Box storage are indications that cloud-service providers are adopting a different storage architecture than the one used by enterprises.”

One big trend impacting the industry: The biggest six external storage vendors aren’t fully invested in the cloud. They experienced 7 percent year-over-year revenue declines in the first quarter of2015. All other providers, including startups, white-box vendors and new entrants to the market, were up 33 percent, collectively.

Capacity of storage systems shipped last quarter was up 20 percent. Dell’Oro identified the top six storage vendors, in order, as EMC, HP, Dell, NetApp, Hitachi and IBM – all of which sell through channel partners.

Follow senior online managing editor Craig Galbraith on Twitter.


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