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Friday, September 03, 2004
External Disk Storage Systems Maintain Healthy Growth in 2nd Quarter of 2004, According to IDC

According to IDC's Worldwide Quarterly Disk Storage Systems Tracker, worldwide external disk storage systems factory revenues grew 8.0% year over year to $3.5 billion in the second quarter of 2004 (2Q04), driven by broad demand for networked storage.

The total disk storage systems market also posted positive results, growing at 5.0% and marking the fourth consecutive quarter of year-over-year revenue growth. Storage capacity continued to accelerate, growing 41.2% year over year to 275 petabytes shipped during the quarter.

"Worldwide spending this quarter reflects broadened investment in disk storage systems outside of the U.S., as both the Asia/Pacific region and Japan experienced the first signs of real growth since the market downturn began," said John McArthur, group vice president and general manager of Information Infrastructure Research at IDC. "Even though the U.S. still represents more than 35% of the market, regional spending for disk storage systems is clearly on the rise and this bodes well for future quarters."

Total External Disk Storage Systems

EMC led the external disk storage systems market with 20.7% revenue share, driven by 19.5% year-over-year revenue growth for the quarter. HP, with a revenue decline of 8.3% year over year, came in second with 18.2% revenue share followed by IBM with 13.5% share and 4.7% revenue growth. While Network Appliance posted the strongest year-over-year revenue growth among the top vendors during second quarter of 2004 with 26.5% growth, EMC and Dell had the largest share point gains from the previous year, with 2.0 and 1.0 points gained respectively.

Networked Disk Storage Systems

The networked disk storage systems market (NAS combined with Open SAN) grew 17.9% year over year and surpassed the $2 billion mark for only the second time ever. EMC continues to maintain its leadership in the total networked storage market with 28.3% revenue share, followed by HP and IBM with 22.4% and 11.7% revenue share respectively.

Similar to last quarter, the number 1 position in the Open SAN market (which includes iSCSI SAN) continues to be hotly contested. HP and EMC were again locked in a statistical tie for the top ranking in the market, which grew 18.6% year over year, with 27% revenue share apiece.

In the NAS market, which grew 15.2% year over year, Network Appliance led with 37.2% revenue share, followed by EMC with 35.2% share. HP posted the strongest year-over-year revenue growth among the vendors tracked by IDC, with 64.2% growth during second quarter of 2004.

Although representing less than 1% of the networked disk storage systems market, the iSCSI SAN market posted more than 30% quarter-over-quarter revenue growth with Network Appliance leading the market with 44.6% share, followed by EMC with 28.1% share.

"Adoption of networked storage drove significant growth across the board in Q204," said Brad Nisbet, program manager of Disk Storage Systems Research, IDC. "Leading suppliers are expanding their product offerings to help bring lower cost networked storage solutions to a broader market, and this investment appears to be bearing fruit."

Total Disk Storage Systems Market - Internal plus External

In the total worldwide disk storage systems market, HP maintained its lead with 23.0% revenue share followed by IBM with 20.3% share. EMC maintained the third position with 14.4% revenue share. EMC and Dell posted the largest year-over-year share gain among the top vendors during 2Q04, with 1.7 and 1.0 points gained respectively.

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