ECB disk storage market continues to be grim
The depleting global economy has hit the external controller-based (ECB) disk storage vendor revenue considerably that totaled $5.5 billion in the first quarter of 2013, a 0.6 per cent increase from revenue of $5.4 billion in the first quarter of 2012, according to Gartner.
“The current increase is the slowest year-over-year growth rate since the fourth quarter 2009,” said Roger Cox, research vice president at Gartner.
According to Gartner, EMC, Fujitsu, Hitachi/Hitachi Data Systems (HDS) and NetApp beat the year-over-year market growth rate in the first quarter. Despite a negative revenue performance by EMC’s midrange portfolio, EMC gained share based on the strength of its high-end VMAX, which grew 11.5 per cent annually. Fujitsu’s focus on its Eternus-branded ECB disk storage products in EMEA beat market growth in all segments of the block-access market. In a reversal of historic patterns, Hitachi/Hitachi Data Systems gained share in the first quarter of 2013 based on the performance of its midrange offerings, in particular the HUS Series and Hitachi Content Active Platform, while its high-end VSP fell short. Noting that clustered Data Ontap is gaining increased traction within its installed base and as a competitive alternative, NetApp displaced IBM as the second-largest ECB disk storage vendor in the first quarter of 2013.
Dell, HP and IBM continue to underperform the market and lose share for fundamentally the same reasons. Their new product year-over-year revenue gains are insufficient to offset the year-over-year decline of the products being replaced. Moreover, Dell may be suffering from organizational and structural issues that are hampering sales, Gartner said. HP continues to struggle with balancing the decline in what it classifies as ‘traditional storage’ with its growing ‘converged’ go-to-market models. IBM’s strategy of emphasizing its IP-based disk storage products is gaining traction, but is not yet strong enough to offset declines in technology sourced from NetApp.On a regional basis, EMEA remains in the grasp of a recession and grew only 1.7 per cent in the first quarter of 2013. North America suffered from a deadlock between its executive and legislative branches of government, which impacted growth in the quarter. Asia/Pacific macros, particularly in China, are losing lustre, which slowed growth of 1.7 per cent in the first quarter of 2013.
Gartner analysts believe that on the whole, the ECB disk storage market will continue to have a grim outlook throughout 2013 with slight growth coming from new products and managed services.
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