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IDC figures confirm declines in high end storage system spending

IDC today published a new report indicating that while worldwide external disk storage systems revenues grew $229 million in Q107 – a 5.9% growth rate from a year ago to $4.3 billion – what drove the increase was external storage systems priced at under $50,000. 

These findings seem to echo recent company earnings results and a Citigroup study which reflect spending sluggishness on high end storage systems, and is further evidence that a shift to cheaper storage may be a more permanent fixture of the storage market moving forward.

Brad Nisbet, program manager, IDC Storage Systems, said midrange and high end systems priced above $50,000 posted several quarters of solid growth in 2006, but this quarter saw a slowdown in sales for these systems. 

Another market trend is the continued decline of external direct attached storage which has suffered from the adoption of network storage systems, internal storage and developments in server virtualization and multi-core processors.

Regarding revenues, EMC kept the number one spot in the external disk storage systems market, with 21.2% revenue share.  HP and IBM were second and third respectively, although they are in a statistical dead heat with 13.4% and 12.7% of revenue share.  Dell and Hitachi’s number were even closer at 8.9% and 8.5% respectively. 


The network disk storage market (NAS combined with Open SAN) experienced a 14.3% year over year growth rate in Q107 to more than $3.0 billion.  In this market, EMC maintained its lead with 26.9% revenue share, second was HP with 13.5% and IBM in third spot with 11.4% of revenue share.


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