Storage market hit by currency swings

EMC storageAlthough enterprises are buying more external storage systems than ever before, fluctuations in currencies are wreaking havoc with the figures.

IDC said that’s particularly true in Europe, the Middle East and Africa (EMEA) where the market fell by six percent in the first quarter of this year, with revenues of $1.7 billion.

But while the value fell during the quarter, capacity grew by 16 percent during the quarter, amounting to 2.9 exabytes.

There are some underlying trends in EMEA, in common with other regions, however. “High growth segments such as cloud and flash have been spared by the drop in investments,” said Silvia Cosso, a senior research analyst at IDC.

The growth in data volumes means European enterprises are adopting flash arrays, because they are fast to respond and have high performance. IDC said the number of flash units shipping increases every quarter. Economies of scale are driving prices down.

Aside from the weakness of the euro, longer IT buying cycles and enterprises moving to cloud storage also accounted for the decline in the first quarter.

The top vendors in EMEA were EMC, NetApp, HP, IBM and Dell – with EMC having the clear lead with 25.39 percent of the market. However, the “others” – which includes original design manufacturers (ODMs) had a 24.69 percent share, bucking the declines suffered in the quarter by the multinational names.