Worldwide Disk Storage Market Growing: IDC

by CXOtoday Staff    Dec 04, 2006

IDC’s worldwide study on external disk storage systems revealed factory revenues grew 9.9% to $4.9 billion. Total disk storage systems market grew $6.2 billion, up 7.9% from the previous year’s quarter with storage capacity reaching 783 petabytes.

“There was a marked increase in average size and selling price for disk storage systems in the third quarter, particularly for systems selling between $50,000 and $300,000,” says Brad Nisbet, program manager, IDC’s Storage Systems Program.

“IDC believes these larger systems are being fueled by a variety of drivers, including the consolidation that results from increased server virtualization, branch office consolidation, and a new wave of organizations looking to store vast amounts of fixed content,” adds Nisbet.

Its figures add that in the third quarter, EMC led the external storage systems market with 21.4% revenue share followed by HP with 17.6%. IBM adds that it was in the third position with 13.7% market share while Dell and Hitachi rounded the top 5 in a statistical tie with 8.0% and 7.9% revenue share respectively. Among the top 5 vendors, EMC and IBM were the only two suppliers with double-digit year growth. The total network disk storage market posted 17.2% year-over-year growth in the first quarter to more than $30 billion.

“After a slowdown in growth during the first two quarters of 2006, the iSCSI SAN market returned to triple-digit in the third quarter,” says Natalya Yezhkova, research manager, IDC’s Storage Systems program.

“iSCSI continues to draw a great deal of attention among end users who are attracted to its ease of use and low TCO. IDC expects to see this adoption accelerate as vendors continue to increase their iSCSI product offerings over the next several quarters,” adds Yezhkova.

It says that in the total worldwide disk storage systems market, HP leads the market with 22.7% followed by IBM with 20.2% and EMC at third position with 15.0% revenue share respectively.

IDC defines a Disk Storage System as a set of storage elements that includes controllers, cables, and (in some instances) host bus adapters, associated with three or more disks. A system may be located outside or within a server cabinet and the average cost does not include infrastructure storage hardware and non-bundled storage software.

IDC’s Worldwide Disk Storage Systems Quarterly Tracker is a quantitative tool to analyze 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.