Price Cuts Weigh on Storage Systems Market, According to Dell'Oro Group

REDWOOD CITY, Calif., June 1, 2016 /PRNewswire/ -- A recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, revealed that price cuts are weighing on the Storage Systems market. DELL, EMC, Hitachi, Hewlett Packard Enterprise, and NetApp are stemming share erosion.

"Established vendors are working hard to maintain share as smaller vendors, with a presence in flash storage and Software Defined Storage, and component suppliers sell directly to Cloud service providers," said Chris DePuy, Vice President at Dell'Oro Group. "In the past, larger vendors had acquired large start-ups or medium-sized companies to maintain share and profitability. More recently though, larger vendors have met their challengers in the channel by being more price aggressive. This is a change in competitive behavior," continued DePuy.

In 1Q16, revenues for both Internal Storage Systems and External Storage Systems declined three percent year-over-year, Midrange External grew one percent, and High-End External declined 14 percent. The top five vendors by revenue in Internal plus External storage were EMC, Hewlett Packard Enterprise, DELL, NetApp, and Hitachi. With the 1Q16 report, we present a study of vendor gross margins. 

About the Report
The Dell'Oro Group Quarterly Storage Systems Report provides complete, in-depth coverage of the market with tables covering manufacturers' revenue, units shipped and average selling prices for Internal and External Storage types, as well as Capacity metrics. For External Storage Systems architecture metrics such Network Integration; Retrieval Method; Communication Protocol, as well as Ports (1 GE; 10 GE; 40 GE; 100 GE; ≤8 Gbps FC; 16 Gbps FC; ≥32 Gbps FC) are provided.  To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com. 

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SOURCE Dell'Oro Group

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