IDC: Healthy growth for disk systems

Posted on July 01, 2005

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By Ann Silverthorn

In the first quarter of this year, revenue for worldwide external disk storage systems grew for the eight consecutive quarter, according to International Data Corp.’s Worldwide Disk Storage Systems Tracker report. In the first quarter of 2005, the market grew 6.7% year over year to $3.8 billion. Total disk storage systems kept nearly the same pace at a 6% year-over-year growth rate, while capacity left revenue in the dust: Capacity shipments of external disk storage systems grew 58.6% year over year to 409 petabytes in the first quarter.

With a 21.4% revenue share, EMC was once again the leader in the external disk storage market. Hewlett-Packard and IBM followed with 17.7% and 11.5%, respectively. Hitachi and Dell vied for fifth place, with Hitachi at 9.1% and Dell at 7.7%. Yet, Dell posted the strongest year-over-year revenue growth during the first quarter of 2005 at 29.2%, followed by EMC at 12.2% (see table, below).

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While EMC leads in the external disk storage market, HP leads in the total worldwide disk storage systems market with a 22.5% revenue share. IBM followed with an 18.6% share and EMC came in third at 14.8%. Again Dell was the leader in year-over-year revenue growth at 26.2%, and EMC grew in this category at a 12.2% rate (see table, below).

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The total network storage market (which IDC defines as NAS combined with open and iSCSI SAN shipments) posted a 16.7% year-over-year growth rate in the first quarter, to slightly more than $2.3 billion. Based on IDC’s definitions of this market, EMC maintained its lead with a 29% revenue share, followed by HP with a 20.4% share. However, Dell and Network Appliance posted the strongest year-over-year revenue growth (among the top five vendors), with 47.1% and 29.7% growth rates, respectively.

The IDC report also indicates strong growth for the iSCSI SAN market. For example, the iSCSI market posted nearly 22% revenue growth in the first quarter compared to the fourth quarter of 2004. Network Appliance continues to lead the iSCSI market with a 43.3% share, followed by EMC at a 28.6% share, according to IDC.

“Storage spending is clearly trending upward as organizations strive to stay ahead of their information storage demands,” says Brad Nisbet, program manager in IDC’s storage systems program. “After nearly two years of positive momentum, spending on storage systems, particularly those priced at less than $300,000, continues to be a top priority in the ongoing efforts to expand and rebuild IT infrastructure.”

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