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December 7, 2010

External disk storage systems factory Q3 revenue up 19%, says IDC

Total disk storage systems market grew to $7bn in revenues

By CBR Staff Writer

Worldwide external disk storage systems factory revenues were up 19% to $5.2bn in the third quarter of 2010, compared to the same period last year, according to research and analyst firm IDC.

The study showed that the total disk storage systems market grew to $7bn in revenues, a 18.5% growth from the prior year’s third quarter.

Total disk storage systems capacity shipped reached 4,299 petabytes, growing 65.2% year over year.

EMC maintained its top position in external disk storage systems market with revenue of $1.4bn, accounting for a market revenue share of 26.1%, while IBM stood second with revenue of $667m and 12.9% revenue share.

NetApp registered revenue of $601m, ended the quarter in the third position with 11.6% market share, while HP and Dell finished the quarter with 11.1% and 9.1% market share, respectively, IDC reported.

According to the report, total open networked disk storage market (NAS Combined with Open / iSCSI SAN) grew 26.4% year-over-year in the second quarter to $4.3bn in revenues.

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EMC continued to maintain its leadership in the total open networked storage market with 30.0% revenue share, followed by NetApp with a 14.0% revenue share.

In the Open SAN market that grew 18.5% year over year, EMC maintained its lead with 23% revenue share, followed by IBM in second and HP in third with 15.5% and 14.3% share, respectively.

The NAS market grew 49.8% year over year, led by EMC with 46.6% revenue share and followed by NetApp with 28.9% share.

The iSCSI SAN market continues to show strong momentum, posting 41.4% revenue growth compared to the prior year’s quarter.

Dell led the market with 33.8% revenue share, followed by EMC and HP, in a statistical tie for second, with 13.8% and 13.7% market share respectively.

IDC storage systems senior research analyst Amita Potnis said the economic crisis of 2009 and commensurate budget reductions compelled end users invest in lower-priced storage systems that still offer enterprise-level features.

"Although most IT budget restraints have been lifted, the trend toward lower-priced systems continued into 2010 as revenues for external storage systems in the lower price bands ($0-$24.99k) increased by 21.1% year over year," Potnis said.

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