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Friday, December 06, 2013
External Disk Storage Systems Factory Revenue Declines


Worldwide external disk storage systems factory revenues posted a year-over-year decline of -3.5%, totaling $5.7 billion, during the third quarter of 2013 (3Q13), according to International Data Corporation (IDC).

For the quarter, the total (internal plus external) disk storage systems market generated $7.4 billion in revenue, representing a -5.6% decline from the prior year's third quarter and a seasonal sequential decline of -4.1% compared to 2Q13. Total disk storage systems capacity shipped reached nearly 8.4 exabytes, growing just 16.1% year over year, IDC said.

"Despite the revenue contraction in the third quarter, we see strong demand for offerings targeted at heavily virtualized environments, such as integrated infrastructure," said Eric Sheppard, Research Director, IDC Storage. "However, this demand has been offset by several factors: reduced spending from the U.S. government, increased use of storage efficiency technologies, increased investment in public cloud capacity, and general price pressures associated with increased competitive environments."

EMC and NetApp experienced the greatest year-over-year share gains during the quarter. EMC improved its share in the external disk storage systems market from 30.0% (3Q12) to 30.7% of total 3Q13 revenue. NetApp was the second largest supplier in the market and increased its share from 11.9% to 13.0% during the same period. IBM accounted for 11.4% of external revenue followed by HP which accounted for 9.5%. Hitachi rounded out the top 5 vendors with an 8.3% share of revenue during the quarter.

The total open networked disk storage market (NAS Combined with non-mainframe SAN) declined by -3.4% year over year during the quarter to slightly less than $5 billion in revenue. EMC maintained its leadership in the total open networked storage market with 33.7% revenue share, followed by NetApp's 15.0% revenue share.

The Open SAN market declined by -6.1% year over year during the quarter. EMC lost share but was the leading vendor with 29.0% revenue share, followed by IBM in second with 14.4% market share. HP, Hitachi, and NetApp accounted for 12.5%, 10.0%, and 9.0% of sales, respectively. The NAS market increased 3.9% year over year, led by EMC with 45.3% revenue share and followed by NetApp with a 30.0% share.

Top 5 Vendors, Worldwide External Disk Storage Systems Market, Third Quarter of 2013  (Revenues are in Millions)

Vendor

3Q13 Revenue

3Q13 Market Share

3Q12 Revenue

3Q12 Market Share

3Q13/3Q12 Revenue Growth

1. EMC

$1,761

30.6%

$1,784

30.0%

-1.3%

2. NetApp

$748

13.0%

$706

11.9%

5.9%

3. IBM

$656

11.4%

$698

11.7%

-6.0%

4. HP

$547

9.5%

$574

9.6%

-4.7%

5. Hitachi

$477

8.3%

$576

9.7%

-17.3%

Others

$1,557

27.1%

 $1,617

27.2%

-3.7%

All Vendors

$5,745

100.0%

 $5,955

100.0%

-3.5%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, December 6, 2013

In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 23.7% and 17.0% respectively.

Top 5 Vendors, Worldwide Total Disk Storage Systems Market, Third Quarter of 2013 (Revenues are in Millions)

Vendor

3Q13 Revenue

3Q13 Market Share

3Q12 Revenue

3Q12 Market Share

3Q13/3Q12 Revenue Growth

1. EMC

$1,761

23.7%

$1,784

22.6%

-1.3%

2. HP

$1,266

17.0%

$1,409

17.9%

-10.2%

3. IBM

$958

12.9%

$1,079

13.7%

-11.2%

4. Dell

$850

11.4%

$914

11.6%

-7.0%

5. NetApp

$748

10.0%

$706

9.0%

5.9%

Others

$1,859

25.0%

$1,991

25.3%

-6.6%

All Vendors

$7,441

100.0%

$7,884

100.0%

-5.6%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, December 6, 2013





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