Worldwide External Disk Storage Systems Factory Revenue Declines for the First Time Since 2009, According to IDC

Fri Jun 7, 2013 12:01am EDT

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Worldwide External Disk Storage Systems Factory Revenue Declines for the First Time Since 2009, According to IDC

Worldwide external disk storage systems factory revenues posted a year-over-year decline of -0.9%, totaling just over $5.9 billion, in the first quarter of 2013 (1Q13), according to the International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total (internal plus external) disk storage systems market generated $7.7 billion in revenue, representing a decline of -3.2% from the prior year's first quarter. Total disk storage systems capacity shipped reached 7.8 exabytes, growing 26.4% year over year.

"Reduced demand within developed markets caused global sales of external disk systems to fall slightly during the first quarter of 2013," said Eric Sheppard, Research Director, Storage. "Emerging markets drove growth within the global market but this was not enough to offset declines elsewhere. Independent storage suppliers were better positioned to capitalize on this new level of demand than their competitors, some of whom are currently working through product transitions and declining server sales."

1Q13 External Disk Storage Systems Results

EMC maintained its lead in the external disk storage systems market with 30.4% revenue share during the quarter, followed by NetApp and IBM with 14.9% and 10.9% respective market share. Hitachi and HP finished the quarter in a statistical tie* for the number 4 position with 8.9% and 8.5% of external sales, respectively.

Open Networked Disk Storage Systems Highlights

The total open networked disk storage market (NAS Combined with non-mainframe SAN) grew 0.4% year over year during the quarter to just over $5.1 billion in revenues. EMC continues to maintain its leadership in the total open networked storage market with 33.4% revenue share, followed by NetApp's 17.1% revenue share.

In the Open SAN market, which grew just 1.3% year over year, EMC was the leading vendor with 31.2% revenue share, followed by IBM in second with 12.6% market share and HP and Hitachi tied* for third with 10.8% each. The NAS market declined -2.2% year over year, led by EMC with 39.6% revenue share and followed by NetApp with a 37.4% share.

Top 5 Vendors, Worldwide External Disk Storage Systems Factory Revenue, First Quarter of 2013 (Revenues in $Millions)

Vendor      

1Q13

Revenue

     

1Q13 Market

Share

     

1Q12

Revenue

     

1Q12 Market

Share

     

1Q13/1Q12

Revenue

Growth

1. EMC       $1,798       30.4%       $1,733       29.0%       3.8%
2. NetApp       $879       14.9%       $841       14.1%       4.5%
3. IBM       $642       10.9%       $678       11.4%       -5.3%
T4. Hitachi       $526       8.9%       $559       9.4%       -6.2%
T4. HP       $501       8.5%       $607       10.2%       -17.5%
                                         
Others       $1,568       26.5%       $1,549       26.0%       1.2%
All Vendors       $5,912       100.0%       $5,967       100.0%       -0.9%

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

* Note: IDC declares a statistical tie in the worldwide disk storage market when there is less than one percent difference in the factory revenues of two or more vendors.

1Q13 Total Disk Storage Systems Market Results

In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 23.2% and 15.5% respectively.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory Revenue, First Quarter of 2013 (Revenues in $Millions)

Vendor      

1Q13

Revenue

     

1Q13 Market

Share

     

1Q12

Revenue

     

1Q12 Market

Share

     

1Q13/1Q12

Revenue

Growth

1. EMC       $1,798       23.2%       $1,733       21.7%       3.8%
2. HP       $1,200       15.5%       $1,453       18.2%       -17.4%
3. Dell       $1,076       13.9%       $922       11.5%       16.7%
4. IBM       $937       12.1%       $1,188       14.9%       -21.1%
5. NetApp       $879       11.4%       $841       10.5%       4.5%
                                         
Others       $1,851       23.9%       $1,858       23.2%       -0.4%
All Vendors       $7,740       100.0%       $2,087       100.0%       -3.2%

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

* Note: IDC declares a statistical tie in the worldwide disk storage market when there is less than one percent difference in the factory revenues of two or more vendors.

An interactive graphic showing the 1Q12 and 1Q13 market share for the top 6 vendors in the worldwide total disk storage systems market is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

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 Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app, available at iTunes, allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

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 to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 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.

International Data Corporation
Eric Sheppard, 508-988-7925
esheppard@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

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