Recent Press Releases
09/01/2006

External Disk Storage Systems Maintain Strong Growth Trajectory in the Second Quarter, According to IDC

FRAMINGHAM, MA – SEPTEMBER 1, 2006 – According to IDC's Worldwide Quarterly Disk Storage Tracker, worldwide external disk storage systems factory revenues grew 8.5% in the second quarter to $4.2 billion for the 13th consecutive quarter of year-over-year growth. The total disk storage systems market grew to $5.9 billion for the quarter, up 6.0% from the prior year's quarter. For the first time, total disk storage systems capacity shipped 704 petabytes, growing 51.5% from the same quarter one year ago.

"Disk storage systems vendors have invested heavily to expand their product offerings – most of the major vendors now have systems to address a wide range of application, capacity, and performance requirements," said Brad Nisbet, program manager, IDC Storage Systems. "As such, the disk storage systems market as a whole is well-poised to satisfy the expected data growth associated with an expanding set of customer needs."

Total External Disk Storage Systems

EMC and HP finished the second quarter in a statistical tie for the number 1 position in the external disk storage systems market with 20.0% and 19.3% revenue share, respectively. IBM maintained the third position with 13.2% market share while Hitachi, Dell, and Sun ended the quarter in a statistical tie for number 4 with 8.0%, 7.8%, and 7.1% revenue share, respectively. Among the top vendors, HP, Hitachi, and Sun each had double-digit year-over-year growth.

Network Disk Storage Systems

The total network disk storage market (NAS Combined with Open SAN) posted 11.4% year-over-year growth in the first quarter to more than $2.8 billion. EMC continues to maintain its leadership in the total network storage market with 26.2% revenue share, followed by HP and IBM with 21.1% and 11.6% revenue share, respectively.

"The double-digit growth in the network disk storage systems market was driven by performance of the NAS and iSCSI SAN segments," said Natalya Yezhkova, research manager, IDC Storage Systems. "As end users become more confident in the reliability and applicability of NAS and iSCSI technologies, they are deploying bigger and more expensive systems, shifting suppliers' revenue distribution toward higher pricebands."

In the Open SAN market, which grew 10.3% year over year, HP took the number 1 position with 25.0% revenue share, followed by EMC with 23.0%. The NAS market grew 16.2% year over year. EMC led the NAS market with 38.5% revenue share, followed by Network Appliance with 32.6% share. The iSCSI SAN market continues to show strong momentum, posting 72.8% revenue growth compared to the prior year's quarter, surpassing $100 million for first time. Network Appliance continues to lead this market with 27.6% share, followed by EMC with 25.0 % share.

Top 5 Vendors, Worldwide External Disk Storage Systems Factory

Revenue, Second Quarter of 2006

(Revenues are in Millions)

2Q06/2Q05

Vendor 2Q06 Revenue Market Share 2Q05 Revenue Market Share Revenue Growth

1. EMC $830 20.0% $806 21.0% 3.0%

1. HP $800 19.3% $725 18.9% 10.3%

3. IBM $547 13.2% $527 13.8% 3.7%

4. Hitachi $332 8.0% $284 7.4% 17.0%

4. Dell $326 7.8% $315 8.2% 3.5%

4. Sun Microsystems $295 7.1% $248 6.5% 19.1%

Others $1,025 24.7% $926 24.2% 10.7%

All Vendors $4,154 100.0% $3,830 100.0% 8.5%

Source: IDC Worldwide Quarterly Disk Storage Tracker, September 2006

Total Disk Storage Systems Market

In the total worldwide disk storage systems market, HP lead the market with 24.0% followed by IBM with 18.9% revenue share respectively. EMC maintained the third position with 14.0% revenue share.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory

Revenue, Second Quarter of 2006

(Revenues are in Millions)

2Q06/2Q05

Vendor 2Q06 Revenue Market Share 2Q05 Revenue Market Share Revenue Growth

1. HP $1,421 24.0% $1,301 23.3% 9.2%

2. IBM $1,120 18.9% 1,132 20.3% -1.0%

3. EMC $830 14.0% $806 14.4% 3.0%

4. Dell $488 8.2% $470 8.4% 3.8%

5. Sun Microsystems $391 6.6% $345 6.2% 13.4%

5. Hitachi $340 5.7% $291 5.2% 16.7%

Others $1,323 22.4% $1,236 22.2% 7.0%

All Vendors $5,913 100.0% $5,581 100.0% 6.0%

Source: IDC Worldwide Quarterly Disk Storage Tracker, September 2006

Taxonomy Notes:

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

The information in this quantitative study is based on a branded view of the disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. Original equipment manufacturer (OEM) sales are not included in this study. In this study, Hitachi Data Systems (HDS) sales do not reflect their OEM sales to Sun Microsystems and Hewlett-Packard.

IDC's Worldwide Disk Storage Systems Quarterly Tracker is a quantitative tool for analyzing the 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. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region.

For more information about IDC's Worldwide Disk Storage Systems Quarterly Tracker, please contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.

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