Disk storage market grows with inclusion of ODM vendors

From PC World: Disk storage sales grew more strongly in the third quarter, helped by sales of non-branded storage gear sold directly to datacenters.

Third-quarter disk storage sales jumped 5.1 percent year over year, reaching US$8.8 billion, according to research firm IDC. This was a change from the anemic growth the market saw earlier this year, brought on by falling demand in mature markets.

Sales of server-based storage with high capacity were up 10 percent in the third quarter. But the big bright spot was the influx of storage systems from original design manufacturers (ODMs) which design and produce hardware to other companies’ specifications. In the storage market, these manufacturers are bypassing traditional brands, selling directly to cloud service providers that put the equipment to use in hyperscale datacenters.

Similar trends appeared in an analysis of server market share published by Gartner earlier this week. It found that server purchases from ODMs by Google and Facebook were driving the market in the third quarter.

For the first time in its analysis of the storage market, IDC included ODMs’ sales. In the third quarter, ODMs collectively posted the highest level of growth, with their storage sales up 22 percent year over year.

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