Menu
Storage hardware sales hit by lower government spending

Storage hardware sales hit by lower government spending

NetApp was the big winner as other vendors suffered from revenue declines

Storage vendors struggled with a decline in spending by the U.S. government and increased investment in public cloud capacity during the third quarter, according to IDC.

Worldwide disk storage systems market sales decreased by 5.6 percent to US$7.4 billion during the quarter, the analyst firm said on Thursday.

The market was also negatively affected by an increased use of storage efficiency technologies and general price pressures, according to IDC. One saving grace for the storage vendors was strong demand for offerings targeted at heavily virtualized environments, IDC said.

The five largest disk storage vendors were EMC, Hewlett-Packard, IBM, Dell and NetApp. NetApp was the only one that increased revenue during the third quarter compared to the same period last year, up 5.9 percent to $748 million.

HP and IBM were hit hardest: their respective sales dropped by 10.2 percent and 11.2 percent to $1.27 billion and $958 million, respectively, according to IDC. EMC's revenue dropped by 1.3 percent to $1.76 billion.

Storage wasn't the only hardware segment that struggled during the third quarter. Earlier this week IDC said that server sales dropped by 3.7 percent during the three-month period. Demand for Linux and IBM's System z mainframes increased but sales of Windows servers were down slightly and Unix server revenue dropped by 31.3 percent.

Not every enterprise hardware segment was down during the third quarter, however, as the growing popularity of 10 Gigabit and 40 Gigabit Ethernet in data centers helped boost revenue for the entire Ethernet switch market by 6.5 percent, IDC said. Enterprises also continued to invest in Wi-Fi equipment to support bring-your-own-device programs.

Send news tips and comments to mikael_ricknas@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags DellIDCIBMstoragenetappHewlett-Packardemc

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments