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Gartner Says Worldwide External Controller-Based Disk Storage Market Revenue Grew 21.4 Percent in Second Quarter of 2010

    The Worldwide external controller-based (ECB) disk storage market experienced robust recovery in the second quarter of 2010 as revenue totaled $4.6 billion, up 21.4 percent from $3.8 billion in the second quarter of 2009, according to Gartner, Inc.

Renewed product refresh initiatives, expanded deployment of server virtualization infrastructures, the emergence of desktop virtualization infrastructures, backup/recovery/archiving modernization, and new file-based applications drove growth in the ECB disk storage market in the second quarter of 2010.

Except for the Japan market, the other major geographic regions grew by double digits year-over-year, with the Latin America, Asia/Pacific and North America markets growing 48.3, 27.4 and 22.1 percent respectively.

"Users continue to favor the more cost-effective modular ECB disk storage systems over monolithic ECB disk storage systems," said Roger Cox, research vice president at Gartner. "Led by network-attached storage's 37.6 percent year-over-year revenue growth, modular ECB disk storage systems increased total market share to 73 percent, while monolithic ECB disk storage share continued to decline to 27 percent in the second quarter of 2010."

Only three vendors – EMC, Fujitsu and NetApp – were able to beat the ECB market in year-over-year revenue growth, with each gaining market share (see Table 1). Gartner estimates that the Data Domain acquisition bolstered EMC's second quarter 2010 ECB disk storage system hardware revenue by $144.3 million. Excluding Data Domain, EMC's core ECB disk storage second quarter 2010 revenue was $1.1 billion, a 25.6 percent increase over second quarter 2009.

Table 1
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 2Q10 (Millions of U.S. Dollars)

 

Company

2Q10

Revenue

2Q10 Market Share (%)

2Q09

Revenue

2Q09 Market Share (%)

2Q09-2Q10

 Revenue Change (%)

EMC1

1,279.0

27.8

903.7

23.8

41.5

IBM

681.7

14.8

602.4

15.9

13.2

NetApp

516.6

11.2

322.1

8.5

60.4

HP

454.9

9.9

388.3

10.2

17.2

Dell

387.9

8.4

345.4

9.1

12.3

Hitachi/HDS2

378.3

8.2

330.0

8.7

14.6

Oracle

152.5

3.3

162.6

4.3

-6.2

Fujitsu

72.3

1.6

56.9

1.5

27.0

Others

683.7

14.8

682.5

18.0

0.2

Total

4,606.8

100.0

3,793.7

100.0

21.4

Note1 EMC revenue excludes OEM revenue from Dell and Fujitsu Technology Solutions.
Note2 Hitachi/Hitachi Data Systems revenue excludes OEM revenue from HP and Oracle.
Source: Gartner (September 2010)

NetApp's storage efficiency technology and unified storage architecture offerings continued to resonate well with users in both block-access and file-access storage infrastructures. NetApp platforms deployed for block-access applications represented 38.6 percent of its total ECB disk storage hardware revenue in the second quarter of 2010, up from 31.5 percent in second quarter 2009. While Fujitsu grew year-over-year ECB disk storage revenue 23.3 percent in the EMEA and Asia/Pacific regions, its current growth engine remains Japan.

With 123.8 percent year-over-year revenue growth, the IBM XIV Storage System highlights IBM's performance. For the first time since Dell bought EqualLogic in 2007, the Dell EqualLogic PS series revenue exceeded Dell/EMC CLARiiON CX4 and Celerra NS revenue. Whereas HP's LeftHand ECB disk storage revenue increased 267.9 percent in second quarter 2010, its EVA and MSA models are down 2.7 percent on a year-over year basis.

Oracle's high-end 9000 series revenue (sourced from Hitachi Data Systems) is down 47.4 percent, but its modular ECB disk storage revenue, driven by the 7000 series unified storage system, increased 29.9 percent. Hitachi/Hitachi Data Systems second quarter 2010 performance was hampered by the expected release of a new high-end ECB disk storage system to replace the currently available USP-V and USP-VM systems.

The '"other vendors" second quarter 2010 ECB disk storage revenue achievement was influenced by vendor consolidation. For example, Data Domain was reported in the other vendors' category for the second quarter of 2009 but was included in EMC's second quarter 2010 results.

Gartner ECB disk storage reports reflect hardware-only revenue as well as hardware revenue associated with financial leases and managed services. Optional storage software revenue and storage area network infrastructure components are excluded.

Additional information on the ECB disk storage market is available in Gartner's "Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 2Q10 Update." The report includes vendor market share by data access method, price band, sales channel and operating system segmentation. The report is available on Gartner's website at http://www.gartner.com/resId=1430724.

 

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