NEWS

SSDs Reign Supreme in Dedicated Storage Environments

Context Enterprise Research Update

24 August 2016 (London, UK): Revenues in Western European distribution channels from storage Solid State Disks (SSDs) from Original Equipment Manufacturers (OEMs) exceed the revenues from storage OEM Hard Disk Drives (HDDs) for the first time in July 2016, marking a turning point in the dedicated storage business as SSDs replace HDDs in large enterprise customers, reports CONTEXT, the IT market analysis company.

Sales of SSDs to enterprise customers in the Western Europe distribution channel grew by +38.3% year-on-year in July 2016, while sales of dedicated storage HDDs declined by -28.7% year-on-year.

At the same time, CONTEXT notes that SSD prices are coming down, broadening the market from large corporate resellers into medium and smaller resellers. For example, in one of the largest SSD sectors, 3.84TB SSDs representing 37.2% of revenues, average selling prices (ASP) have dropped by -38.4% year-on-year, from EUR 6,911.55 in July 2015 to EUR 4,259.08 in July 2016. A year ago, distributors sold this product solely to corporate resellers but now just under 19% of sales are to small and medium resellers.

Source: Context