Market on Track for Growth in 2020

REDWOOD CITY, Calif. – December 11, 2019 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Server and Storage Systems market declined 2 percent in 2019.

“Both the Enterprise and Cloud markets continued to consume excess capacity after an unprecedented year of IT investments in 2018,” said Baron Fung, Director at Dell’Oro Group. “In addition, macroeconomic factors and declining commodity costs played a role in dampening demand. But growth is on the horizon, as Cloud operators are expected to resume capacity expansion that will lead the server market into positive growth territory starting in 4Q 2019 and throughout 2020. However, we anticipate the Enterprise server and storage market to remain subdued, as this workload continues to shift to the Cloud,” explained Fung.

Additional highlights from the 3Q 2019 Server and Storage Systems Quarterly Report:

  • Dell ranked number one in server and storage vendor revenue share, followed by HPE and Inspur.
  • All-Flash Arrays had double-digit growth in 3Q 2019 and are projected to account for 40 percent of storage systems revenue in 2019.
  • White box servers, which are primarily deployed by the Top 4 Cloud service providers, continued to gain share from branded OEM vendors, despite lower Cloud spending.

About the Report

Dell’Oro Group’s Server and Storage Systems Quarterly Report provides complete in-depth coverage of the Server and Storage Systems market with tables covering manufacturers’ revenue and port shipments for Blade, High-Density, and Stand-Alone servers; and for All-Flash and Hybrid/Disk-based Storage Arrays. The report describes white box versus traditional enterprise server and storage systems shipments, and server and storage systems network connectivity. To purchase this report, please contact us at dgsales@delloro.com.

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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