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IDC: Soft Q3 for EMEA Storage

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The EMEA Q3 2016 external storage market remains soft, IDC reports-- revenues are down by -5.1% Y-o-Y to $1.49 billion, as "huge growth" in the flash segment fails to offset falling traditional HDD-only arrays.

In fact, all-flash systems see 76.4% Y-o-Y growth, while hybrid flash arrays are up by 3.5%. However HDD-only array revenues are down by 33.6 Y-o-Y, heavily affecting total EMEA market performance.

IDC EMEA Storage

"Contingent factors such as macroeconomic volatility and turmoil on the supply side, coupled with acceleration in cloud deployment and infrastructure consolidation, is pushing the EMEA market into negative territory for the 7th quarter in a row," IDC remarks. "On the bright side, the AFA segment kept very strong momentum in the region, almost doubling its shares compared to the same period a year ago, further improving workload consolidation."

The value of the W. European external storage market is down by over -5% Y-o-Y, reaching $1.06bn, while capacity is down by 5% to 1978.7 petabytes, the result of growing interest in software-defined storage, hyperconverged infrastructure and cloud buildouts in the UK, Germany and France. Further affecting demand in external storage arrays is geopolitical uncertainty. That said, spending on flash storage systems, especially AFAs, does see how growth, and as a result flash storage systems account for 68% of overall spending in the region.

CEMA sees similar storage market results, with Q3 2016 external storage revenues falling by -4% Y-o-Y to $418.8 million. Capacity, on the other hand, sees moderate 5% growth to reach 760.2 petabytes. Flash storage systems (AFA and HFA) see "significant" double-digit growth to account for over 60% of the total market.

The CEE storage market feels a double-digit decline, with the only bright spots being a recovering Russian market and some projects in large verticals, government and education in smaller regional markets. On the other hand the MEA market records single-digit growth through results in Turkey, the Gulf region and Central Africa as pending global sports and trade events in the region attract investment in defense and other public sectors. Boosting growth in the private sector are consolidation projects in banking, telecommunications and the energy sector.

"The CEMA region is still very turbulent but has significant market potential due to pent-up demand and the expected effect of a new EU funds program period on CEE countries and the ongoing economic diversification programs in the MEA region aiming to escape from oil-dependency," the analyst concludes. "End users in the region have restarted their datacentre investments and show even more propensity toward new storage technologies and particularly flash technologies due to a strong push by vendors, falling prices, consolidation, and growth in cloud and performance-hungry workloads."

Go IDC EMEA External Enterprise Storage Systems Q3 2016