Worldwide Disk Storage Market Grew 7% in Q3  - Gartner

Worldwide external controller-based (ECB) disk storage revenue totaled $3.7 billion in third quarter 2006, an increase of 7.4% over the same period of 2005, according to Gartner. The top 7 vendors accounted for 83.5% of worldwide ECB revenue in Q3 2006, up 2.1% from last year. 

NetApp showed the strongest growth year over year among the top-tier vendors, with 20.4% revenue growth for the quarter. 

  • EMC maintained the No. 1 spot overall, finishing the quarter at 25.5%.
  • IBM maintained the No. 2 spot with a market share of 14.8%, while increasing its revenue by 17.9% year over year. 
  • Hewlett-Packard was the only vendor to lose revenue in the third quarter, dropping by 11.9%, while retaining the No. 3.
  • Hitachi/HDS also experienced 17.9% revenue growth year over year, maintaining its No. 4 ranking with a 10.8% share of the market. 
  • Dell and NetApp were at No. 5 and 6, respectively, each with a 7.3% market share. 
  • Sun Microsystems fell to the No. 7 spot with 5.3% market share.

“While a portion is attributable to seasonal fluctuations, the majority of the capacity growth is the result of buyer compliance with Sarbanes-Oxley regulations requiring not only data retention but retrieval as well,” said Donna Taylor, principal analyst for Gartner’s global Storage Quarterly Statistics program.

Worldwide External Controller-Based Disk Storage 
Vendor Revenue Estimates for 3Q 2006


Company

3Q06 Revenue ($M)

3Q06 Market Share (%)

3Q05-3Q06 Change (%)

EMC *

953.9

25.5

17.4

IBM

553.1

14.8

17.9

Hewlett-Packard

475.1

12.7

-11.9

Hitachi/HDS **

402.7

10.8

17.9

Dell

272.2

7.3

4.1

NetApp

272.2

7.3

20.4

Sun Microsystems

196.5

5.3

6.1

Others

616.1

16.5

-4.8

Total

3,741.8

100.0

7.4

Note* EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
Note ** Hitachi/HDS revenue excludes OEM revenue from HP and Sun Microsystems.
Source: Gartner Dataquest (December 2006)

Gartner’s external controller-based disk storage reports reflect hardware only revenue, as well as hardware revenue associated with financial leases and managed services. Optional storage software revenue and storage area network (SAN) infrastructure components are excluded.

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