IDC: Healthy growth for disk systems

By Ann Silverthorn

—For the eighth consecutive quarter, factory revenue for worldwide external disk storage systems has grown, 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 for 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%

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.

"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."

This article was originally published on June 10, 2005