Big storage revenues face continued decline but for Big Blue things look worse

The top five in storage continue to see declining revenues, but for IBM storage seems to have been worse than for its competitors.

This week Storage Newsletter published an aggregation of financial results that included the top five storage array makers.

Its findings the following in terms of ranking, with all vendors where comparisons were possible showing a decline in revenues.

#1 – EMC with storage revenue of $16.3 million in 2015 and no equivalent figure for 2016 due to Dell EMC not publishing those figures.
#2 – NetApp, with revenues of $6.123 million in 2015, and $5.546 million in 2016, a decline of 9% year-on-year.
#3 – Hitachi Data Systems, with revenue of $4.079 million in 2015, with no figures for 2016 noted. Revenue decline for 2014 to 2015 was recorded as -4%.
# 4 – HPE, with 2015 revenue of $3.180 and 2016 revenue of $3.065, a decline of 4% year-on-year.
# 5 – IBM, with 2015 revenue of $2.4 million, down to $2.184 in 2016, a decline of 9%.

That’s just a snapshot of what we know already. The “traditional” storage array market is in a period of long-term decline, with hyper-converged, hyperscale and converged systems making good progress. See here for a wider analysis.

An interesting comparison is to put these rankings against those of four years ago.

Here it becomes apparent that a big loser is IBM.

In 2011 we noted the following rankings from Gartner figures:

* EMC: $6.279 billion and 32% market share
* IBM: $3 billion and 14.2%
* NetApp: $2.45 billion and 11.5%
* HP: $2.07 billion and 9.8%
* HDS: $1.99 billion and 9.4%

Aside from EMC’s gathering of an even greater proportion of storage revenues, the big change there is IBM’s drop down the rankings.
Why that happened may be the subject of future blogs, but I’m very happy to hear your views on the subject in the meantime.

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