Storage Systems Market on the Rise

Global revenue for standalone storage systems grew 8.6 percent year over year to reach $3.8 billion in the second quarter, according to market researcher IDC.

This growth, an improvement over the first quarter, was mainly due to double-digit growth in network attached storage, or NAS, systems, IDC said Friday. This segment grew 16.1 percent to $2.5 billion.

EMC, with $807 million in revenue, retained its position as the top standalone storage systems company. EMC also grew its market share to 21.2 percent from 21 percent a year ago. But the credit for the strongest growth in the quarter went to Dell, which grew 27 percent to move up to the fourth position with 8.3 percent share in revenue. Its market share exactly a year ago was 7.1 percent and was positioned fifth after Hitachi.

Hewlett-Packard and IBM remained at the second and third spots by growing 13.7 percent to $717 million and 13.4 percent to $527 million, respectively. For all four companies, growth came mainly from their midrange storage products.

"The high growth for external systems represents continued investment in networked storage, while the growth in internal storage indicates richer configurations and increased sales of servers with three or more hard disk drives," IDC analyst Brad Nisbet said in a statement.

In the network storage market, EMC maintained its No.1 position with 27.9 percent revenue share, followed by HP which had 21.3 percent share. Dell and IBM, however, saw 33.2 percent and 22.9 percent growth, respectively.

The overall storage systems market, which includes both standalone and internal systems, grew at an even higher rate of 9.9 percent, raking in a total revenue of 5.6 billion in the same quarter, IDC said. HP led the overall storage systems market with 23.5 percent market share. IBM and EMC were second and third, respectively.

Total capacity continued to outpace overall revenue growth with total disk storage systems petabytes growing 59.3 percent year over year to 457 petabytes for the second quarter.

1 posted on 09/02/2005 1:10:21 PM PDT by nickcarraway

But the credit for the strongest growth in the quarter went to Dell

Another reason why is on top. Dell is an EMC reseller. They operate through a close partnership with EMC...from sales and implementation to support.

2 posted on 09/03/2005 2:17:23 PM PDT by Bloody Sam Roberts ("Are you human?".........."No. I am a meat popsicle.")

What about some of the new entrants to the market, like Pillar Data Systems?

3 posted on 09/03/2005 7:07:32 PM PDT by nickcarraway (I'm Only Alive, Because a Judge Hasn't Ruled I Should Die...)

I've heard the name Pillar but I must admit I don't know much about them.
But I do know that a Dell NAS system is a repackaged Clariion CX series made by EMC.
Dell has some great people and I've enjoyed working with them.

4 posted on 09/05/2005 4:12:37 PM PDT by Bloody Sam Roberts ("Are you human?".........."No. I am a meat popsicle.")

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