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Another Solid Quarter for Storage

Storage vendors had another strong showing in the third quarter, led by a resurgent EMC. According to IDC, worldwide external disk storage systems factory revenue in the third quarter grew 9.9 percent from a year ago to $4.3 billion, the 14th consecutive quarter of year-over-year growth. The total disk storage systems market (both external and […]

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Paul Shread

Dec 4, 2006

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Storage vendors had another strong showing in the third quarter, led by a resurgent EMC.

According to IDC, worldwide external disk storage systems factory revenue in the third quarter grew 9.9 percent from a year ago to $4.3 billion, the 14th consecutive quarter of year-over-year growth. The total disk storage systems market (both external and server-based storage) grew to $6.2 billion, up 7.9 percent from the year-ago quarter. Total disk storage systems capacity shipped reached 783 petabytes, growing 50.2 percent from the year-ago quarter.

“There was a marked increase in average size and selling price for disk storage systems in the third quarter, particularly for systems selling between $50,000 and $300,000,” stated Brad Nisbet, program manager with IDC’s storage systems program. “IDC believes these larger systems are being fueled by a variety of drivers, including the consolidation that results from increased server virtualization, branch office consolidation, and a new wave of organizations looking to store vast amounts of fixed content.”

EMC’s resurgenceafter a couple of weak quarters made it the fastest grower of the top five vendors, posting 18 percent growth and adding more than a point to its market share. IBM also had a solid quarter.

For the third quarter, EMC led the external disk storage systems market with a 21.4 percent revenue share, followed by HP with a 17.6 percent share and 1.8 percent growth. IBM maintained the third position with 13.7 percent market share and 14.3 percent growth, while Dell and Hitachi rounded out the top five in a statistical tie with 8 percent and 7.9 percent revenue share, respectively. Of the top 10, Network Appliance and NEC also posted strong growth (see table below).

The total network disk storage market (NAS combined with Open SAN) grew 17.2 percent year-over-year to more than $3 billion. EMC maintained its lead in the total network storage market with a 27.1 percent revenue share, followed by HP and IBM with 17.9 percent and 12.5 percent, respectively.

In the Open SAN market, which grew 17.3 percent year over year, EMC regained the top position with a 24.4 percent revenue share, followed by HP with 21 percent. The NAS market grew 16.7 percent year over year, led by EMC with a 38.1 percent share and followed by Network Appliance at 30.2 percent. The iSCSISAN market continues to be red hot, posting 108.4 percent revenue growth from the prior year’s quarter. Network Appliance continues to lead the iSCSI market with a 21.5 percent share, followed by EMC with 16.9 percent.

This article was first published on InternetNews.com. To read the full article, click here.

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Paul Shread

Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.

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