* NetApp tied with IBM for No. 2 in external storage market
* Overall market grows 17 pct to $5 bln in 1st quarter
BOSTON, June 4 NetApp Inc (NTAP.O) surged past
three rivals to move into second place in the market for
external data storage equipment, whose overall sales grew 17
percent to $5 billion in the first quarter, according to market
IDC said on Friday that NetApp was in a statistical tie
with IBM (IBM.N) and behind industry giant EMC Corp EMC.N
during the quarter ended March 31.
NetApp's sales climbed 47 percent from a year earlier to
$550 million. While that was behind the $579 million posted by
IBM, IDC said it considers the two tied because their total
market share is within less than a percentage point of each
IBM owned 11.7 percent of the market during the first
quarter, up from 11.2 percent a year earlier, while NetApp's
share climbed to 11.1 percent from 8.8 percent.
"That's a very big increase in market share," said IDC
analyst Steve Scully.
EMC's revenue climbed 38 percent from a year earlier to
$1.2 billion. Its market share rose from 21 percent to 24.6
percent, according to IDC. Its sales were buoyed by revenue
from Data Domain, a company it acquired in July.
Scully said that NetApp's market share has been growing so
rapidly because it has a broad range of products that appeal to
small, mid-sized and large companies. They all run on the same
operating system, which makes it easy to upgrade as a company
grows, he added.
A year ago, NetApp ranked sixth-place in IDC's rankings
behind EMC, Hewlett-Packard Co (HPQ.N), IBM, Dell Inc DELL.O
and Hitachi Ltd (6501.T).
NetApp's shares have doubled over the past year. Shares in
its competitors have climbed between 10 percent and 45
(Reporting by Jim Finkle, editing by Bernard Orr)