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Momentum Continues in External Disk Storage Systems Market During the First Quarter of 2007, According to IDC

Posted on: Thursday, 7 June 2007, 00:00 CDT

Worldwide external disk storage systems factory revenues grew $239 million in the first quarter of 2007 (1Q07), posting 5.9% growth from a year ago to $4.3 billion, according to the IDC Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total disk storage systems market grew to $6.1 billion up 7.2% from the prior year's first quarter. Total disk storage systems capacity shipped surpassed 1,000 petabytes for the second consecutive quarter, growing 60.4% over the first quarter of 2006.

"External storage systems selling under $50,000 drove the growth in the first quarter of 2007," said Brad Nisbet, program manager, IDC Storage Systems. "After several quarters of impressive growth in 2006 for midrange and high-end systems selling with average prices above $50,000, we saw only modest gains in these systems this quarter. The growth in lower-end products indicates opportunity across the board as customers continue to invest in a broad spectrum of available storage solutions."

Total External Disk Storage Systems

For the first quarter, EMC maintained its lead in the external disk storage systems market with 21.2% revenue share, followed by HP and IBM in a statistical tie for the number 2 position with 13.4% and 12.7% revenue share, respectively. Dell and Hitachi rounded out the top 5 (in a statistical tie for the fourth position) with 8.9% and 8.5%, respectively. Among the top 5 suppliers, Dell posted the strongest year-over-year revenue growth (12.0%) during 1Q07.

Network Disk Storage Systems

The total network disk storage market (NAS Combined with Open SAN) posted 14.3% year-over-year growth in the first quarter to more than $3.0 billion. EMC continues to maintain its leadership in the total network storage market with 26.9% revenue share, followed by HP and IBM with 13.5% and 11.4% revenue share, respectively.

"External direct-attached storage continues to decline, being cannibalized primarily by network storage systems," said Natalya Yezhkova, research manager, IDC Storage Systems. "The other threat to external DAS is coming from internal storage that grew at 10.5% in the first quarter of 2007. Developments in the server market, including server virtualization and the adoption of multi-core processors, has lead to deployments of servers with larger storage capacity, thus adding to the decline in external DAS."

In the Open SAN market, which grew 15.3% year over year, EMC was the number 1 vendor with 25.1% revenue share, followed by HP with 15.6%. The NAS market grew 10.9% year over year, led by EMC with 33.3% revenue share and followed by Network Appliance with 29.6% share. The iSCSI SAN market continues to show strong momentum, posting 68.6% revenue growth compared to the prior year's quarter. Network Appliance continues to lead the market with 24.3% share, followed by EMC with 14.6% share.

Top 5 Vendors, Worldwide External Disk Storage Systems Factory Revenue, First Quarter of 2007

(Revenues are in Millions)

Vendor

1Q07 Revenue

Market Share

1Q06 Revenue

Market Share

1Q07/1Q06 Revenue Growth

1. EMC

$912 

21.2%

$911 

22.5%

0.1%

2. HP

$575 

13.4%

$581 

14.3%

-1.0%

2. IBM

$545 

12.7%

$520 

12.8%

4.8%

4. Dell

$383 

8.9%

$342 

8.4%

12.0%

4. Hitachi

$364 

8.5%

$340 

8.4%

7.1%

Others

$1,514 

35.3%

$1,360 

33.6%

11.3%

All Vendors

$4,292 

100%

$4,053 

100%

5.9%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, June 6, 2007

Total Disk Storage Systems Market

In the total worldwide disk storage systems market, HP leads the market with 20.1% revenue share followed by IBM with 18.3% revenue share. EMC maintained the number three position with 14.8% revenue share.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory Revenue, First Quarter of 2007

(Revenues are in Millions)

Vendor

1Q07 Revenue

Market Share

1Q06 Revenue

Market Share

1Q07/1Q06 Revenue Growth

1. HP

$1,237 

20.1%

$1,171 

20.4%

5.7%

2. IBM

$1,123 

18.3%

$1,066 

18.6%

5.3%

3. EMC

$912 

14.8%

$911 

15.9%

0.1%

4. Dell

$574 

9.3%

$508 

8.9%

12.9%

5. Hitachi

$373 

6.1%

$349 

6.1%

6.9%

5. Sun Microsystems

$331 

5.4%

$308 

5.4%

7.4%

Others

$1,592 

25.9%

$1,414 

24.7%

12.5%

All Vendors

$6,140 

100%

$5,726 

100%

7.2%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, June 6, 2007

Taxonomy Notes:

IDC defines a Disk Storage System as a set of storage elements, including controllers, cables, and (in some instances) host bus adapters, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.

The information in this quantitative study is based on a branded view of the disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. Original equipment manufacturer (OEM) sales are not included in this study. In this study, Hitachi Data Systems (HDS) sales do not reflect their OEM sales to Sun Microsystems and Hewlett-Packard.

IDC's Worldwide Disk Storage Systems Quarterly Tracker is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region.

For more information about IDC's Worldwide Disk Storage Systems Quarterly Tracker, please contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

Source: Business Wire

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