Study: HP Holds Lead in Declining Storage Market Revenues

A report from IDC says storage systems revenue is down 3% as customers expand preexisting NAS and SAN installations to stretch their dollars.


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A new report from IDC maintains that worldwide disk storage systems factory revenue was down 3% compared to second quarter, 2002. The leading manufacturer in revenues continues to be Hewlett Packard, with a 27% share; though IBM, with a 20% share of the market, gained 7% in revenues.

In a statement, IDC's Charlotte Rancourt said "The failure to gain revenue momentum in Q3 is yet another indication that a rebound in the disk storage systems market is not imminent." Rancourt went on to note that the growth in storage needs is not offsetting the steadily decreasing cost of storage.

The company also noted that companies expanded pre-existing SAN and NAS installations to increase capacity, contributing to declining revenues, but noted that the trend towards networked storage continues, "which means that suppliers have to look beyond revenue to see that capacity growth of networked storage exceeds the growth of direct-attached storage," according to IDC Vice President John McArthur.

IDC provided a table of the top five worldwide disk storage systems in factory revenue for third quarter, 2002:

Vendor Q3
HP $1,294 27% $1,265 26% 3%
IBM $952 20% $886 18% 7%
EMC $505 11% $643 13% -21%
Dell $278 6% $273 6% 2%
Hitachi $277 6% $224 5% 23%
Others $1,439 30% $1,617 33% -11%
All Vendors $4,745 100% $4,908 100% -3%

The study notes that the total external storage market (networked storage plus external direct attached storage) declined 5% sequentially to $3.2 billion in the third quarter from the previous quarter. HP maintains it leadership with 22% revenue share, followed by EMC and IBM with 15.8% and 14.6% share, respectively

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