Pockets of Growth Appear in Second Quarter Results for the Enterprise Storage Systems Market, According to IDC

FRAMINGHAM, Mass. – September 4, 2009 – Worldwide external disk storage systems factory revenues posted a decline of 18.3% year over year in the second quarter of 2009 (2Q09), totaling $4.1 billion, according to the IDC Worldwide Disk Storage Systems Quarterly Tracker. For the quarter, total disk storage systems factory revenues fell to $5.7 billion, a decline of 18.7% from the prior year's second quarter, driven by continued weakness in server systems sales. Total disk storage systems capacity shipped reached 2,345 petabytes, growing 15.2% year over year.

“The enterprise storage systems market continued to feel the impact of current economic conditions, posting its third straight year-over-year decline. However, certain sweet spots in the market continue to thrive,” said Liz Conner, research analyst, Storage Systems. “iSCSI SAN and FC SAN both showed strong year-over-year growth of 57.2% and 66.8%, respectively, in the entry level price bands ($0K-$14.99K) as customers continue to demand enterprise level network storage at a more economically friendly price point. Similarly, midrange NAS (price band $15K-$49.99K) enjoyed solid year-over-year growth of 20.7% as file-level data generation continues to be a hot topic for many customers.”

Total External Disk Storage Systems

EMC maintained its lead in the external disk storage systems market with 21.5% revenue share in the second quarter, followed by IBM with 14.9% revenue share. HP ended in the third position with 11.4% market share. Dell and NetApp finished the quarter in a statistical tie for fourth position with 9.8% and 8.9% revenue share, respectively.

"While all vendors are down year over year, we are beginning to see several storage vendors whose external disk storage revenues are showing sequential (quarter-over-quarter) growth, indicating some stability beginning to take shape in the market," said Steve Scully, research manager, Enterprise Storage at IDC.

Network Disk Storage Systems

The total network disk storage market (NAS Combined with Open / iSCSI SAN) declined 15.3% year over year in the second quarter to more than $3.2 billion in revenues. EMC continues to maintain its leadership in the total network storage market with 26.0% revenue share, followed by IBM with 13.8% revenue share.

In the Open SAN market, which declined 23.8% year over year, EMC led with 23.1% revenue share. The NAS market declined 6.8% year over year, led by EMC with 38.7% revenue share and followed by NetApp with 26.1% share. The iSCSI SAN market continues to show strong momentum, posting 27.2% revenue growth compared to the prior year's quarter. Dell led the market with 35.3% revenue share, followed by EMC with 15.7%.

Top 5 Vendors, Worldwide External Disk Storage Systems Factory

Revenue, Second Quarter of 2009

(Revenues are in Millions)

Vendor 2Q09Revenue 2Q09MarketShare 2Q08Revenue 2Q08MarketShare 2Q09/2Q08RevenueGrowth

1. EMC $ 887 21.5% $ 1,101 21.8% -19.5%

2. IBM $ 614 14.9% $ 667 13.2% -8.0%

3. HP* $ 469 11.4% $ 656 13.0% -28.6%

4. Dell** $ 404 9.8% $ 469 9.3% -13.8%

4. NetApp $ 368 8.9% $ 400 8.9% -8.1%

Others $ 1,380 33.5% $ 1,751 34.7% -21.2%

All Vendors $ 4,121 100.0% $ 5,044 100.0% -18.3%

Source: IDC Worldwide Disk Storage Systems Quarterly

Tracker, September 4, 2009

* Note: Starting in Q4 2008, HP is reported as the combined

entity of HP and LeftHand.

** Note: Starting in Q1 2008, Dell is reported as the

combined entity of Dell and EqualLogic.

Total Disk Storage Systems Market

In the total worldwide disk storage systems market, IBM and HP finished the second quarter in a statistical tie with 17.3% each followed by EMC with 15.7% market share.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory

Revenue, Second Quarter of 2009

(Revenues are in Millions)

Vendor 2Q09Revenue 2Q09MarketShare 2Q08Revenue 2Q08MarketShare 2Q09/2Q08RevenueGrowth

1. IBM $981 17.3% $1,123 16.1% -12.6%

2. HP* $980 17.3% $1,370 19.7% -28.4%

3. EMC $887 15.7% $1,101 15.8% -19.5%

4. Dell** $769 13.6% $798 11.5% -3.6%

5. NetApp $368 6.5% $400 5.7% -8.1%

Others $1,680 29.7% $2,175 31.2% -22.7%

All Vendors $5,665 100.0% $6,966 100.0% -18.7%

Source: IDC Worldwide Disk Storage Systems Quarterly

Tracker, September 4, 2009

* Note: Starting in Q4 2008, HP is reported as the combined

entity of HP and LeftHand.

** Notes: Starting in Q1 2008, Dell is reported as the