IHS Markit has recently published new research on the Storage Array and JBOD market in 3Q18. The following are insights and excerpts provided by our quarterly Data Center Storage Equipment Market Tracker.
We forecast server external data center storage revenue, including array and server expansion, to grow 17% YoY in CY18, 9% YoY in CY19, and then continue to grow out to the end of CY22 at a 10% CAGR (CY17-’22).
In 3Q18, high performance flash only systems continued their growth trajectory with the All Flash arrays up 12% YoY, and we forecast all flash including NVMe disk versions to continue to grow at a 24% CAGR (CY17-’22).
Drivers for all flash arrays include improved IT spending outlook allowing organizations to invest in upgrades, replacing high-performance rotating disk systems with much faster All Flash Performance systems in transactional workloads, and the historic declining costs of flash disk allowing select general mass storage workloads to move to flash disk systems.
In 3Q18, cost-effective, Capacity-Optimized near-line (NL) spinning disk (low cost disks greater than 4TBs) system revenue grew 25% YoY, but we expect it to plateau in the coming years with Spinning ending at 2% CAGR (CY17-’22). The growth plateau is due to performance HDD going away, and capacity-oriented architectures mimicking cloud, thus transitioning to JBOD based architectures.
Drivers for low-cost capacity arrays include the transforming of aging data protection processes to cost effective capacity-optimized secondary storage systems, and the need for capacity oriented systems to be deployed as bulk storage systems in cloud and IoT data aggregation workloads.
JBOB/JBOF systems provide a compelling alternative to branded Arrays
Expansion systems (JBOD + JBOF (NVMe)) that support flash, spinning disk or a mix are forecasted to grow at a 21% CAGR through CY22, largely driven by CSPs creating cloud storage systems with them, and in later years by the enterprise using them for software-defined storage (SDS) systems. Most of these cloud deployed JBODs are densely populated with NL SAS/SATA disks for bulk object-based storage, but there are also a significant portion of systems that are flash-based SAS JBODs used as persistent compute disk arrays within cloud hyperscalers.
“Cloud hyperscalers have made a huge impact on the storage landscape since their arrival. CSPs continue to invest in assembling their own cloud systems from ODM sourced JBODs, commodity-like servers and storage software, and avoid purchasing complete storage systems from traditional storage players”, says Dennis Hahn, MBA.
Additional Data Center Storage Market Highlights
Key data points:
- Total server external DC storage to reach $49B by 2022, up from $30B in 2017 with a 5-year CAGR of 10%.
- Array revenue was up 14% YoY in 3Q18, partly due to flash-performance (all flash) up 12% YoY and capacity-optimized (largely NL spinning) up 25% YoY.
- White box revenue was up 9% QoQ and 31% YoY, hitting $2.2B in 3Q18, while Open Compute (OCP) revenue is seeing similar growth up 10% QoQ and 38% YoY, but at a lower base of $410M in 3Q18.
- Fibre channel (FC) controller ports saw a resurgence, growing to 15% YoY in 3Q18, with 32G FC at 40% of total controller FC ports, overtaking 16G FC at 36% of total controller FC ports in 3Q18.
- Cloud service providers (CSP) accounted for 39% of 3Q18 storage equipment revenue, telco was 8%, and enterprise 53%; telco service provider growth is just beginning, as network providers look to broaden their service offerings into edge services, such as IoT repositories and analytics.
About this new Data Center Storage Equipment Tracker
The IHS Markit Data Center Storage Equipment market tracker is part of the Data Center Storage Intelligence Service and provides quarterly worldwide and regional market size, vendor market share, 5-year forecasts, and analysis and trends for data center storage arrays and server expansion (JBODs). Unique tracker views are provided by host connectivity, form factor, data (access) organization, systems (open) type, and market (cloud) segment to help you better track the various storage segments in pivot table and pdf formats. As part of the storage tracker, we provide vendor share for the storage equipment market leaders, and track vendors including white box vendors (as a group), Dell EMC, NetApp, HPE, Huawei, Hitachi, IBM, Pure Storage, Lenovo, Inspur, Super Micro, QCT and Wiwynn.