Global Q3 Total Disk Storage Systems Market Balloons to $7 Billion

Segment grew 18.5 percent in Q3 compared to last year, researcher IDC says. External disk storage systems market posted 19 percent increase to about $5.2 billion for fourth highest quarterly revenue on record.

December 6, 2010

D.H. Kass

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The total disk storage systems market ballooned to some $7 billion during the third quarter of 2010, an 18.5 percent spike from the similar period last year, according to figures compiled by researcher International Data Corp.

Worldwide external disk storage revenue jumped by 19 percent to $5.2 billion for the quarter when compared to the prior year’s same period, IDC said. The researchers said that the external disk storage systems market posted the fourth highest quarterly revenue totals on record.

The capacity of the disk storage systems shipped during the quarter reached 4,299 petabytes, a 65.2 percent year-over-year increase, IDC said. The researcher considers a total disk storage system to consist of controllers, cables, host bus adapters in some cases, associated with three or more disks.

"Users are still making up for their reduced storage spending in 2009 as the third quarter recorded the fourth highest revenues in a single quarter for external disk storage systems," said Liz Conner, IDC senior research analyst, storage systems.

"The increased investment by end users and vendors alike in iSCSI SAN and NAS (41.4% and 49.8% year-over-year growth respectively) has helped fuel the overall growth, while easing budget constraints sparked a pickup in FC SAN and higher end systems alike," she said.

Hewlett-Packard Co. and EMC Corp. each commanded a 19 percent share of the worldwide total disk storage systems market in the third quarter of 2010, IDC said. Both vendors generated factory revenue of slightly over $1.3 billion for the period with EMC posting a 28 percent growth over the same period last year and HP a 22 percent increase.

HP and EMC were followed by IBM Corp. at 14.8 percent, Dell Inc. at 12 percent and NetApp Inc. at 8.6 percent share of the market.

Of the top five vendors in the segment, NetApp recorded the highest revenue growth compared to its performance during the third quarter last year at nearly 55 percent.

In the external disk storage systems market, EMC commanded a 26.1 percent share of the segment for the quarter, followed by IBM at 12.9 percent share, and NetApp and HP, each with about 11 percent. Dell completed the top five at 9.1 percent share, according to IDC’s data.

In the open networked disk storage systems market, which combines the network attached storage (NAS) and open/iSCSI storage area network (SAN) segments, EMC maintained its leadership position at 30 percent share, followed by NetApp at 14 percent share. The segment grew by 26.4 percent to 4.3 billion in revenue

"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,” said Amita Potnis, IDC senior research analyst, storage systems.

“End-users keep looking to get the most for their money, while vendors continue to invest resources to develop storage systems that meet this need," she said.

TAGS: SAN,IDC,NAS,disk storage,Storage

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