Press Release

STAMFORD, Conn., December 5, 2006 View All Press Releases

Gartner Says Worldwide External Controller-Based Disk Storage Market Grew 7% in Third Quarter of 2006

Worldwide external controller-based (ECB) disk storage revenue totaled $3.7 billion in third quarter 2006, a 7.4% increase over the same period of 2005, according to Gartner, Inc.

NetApp showed the strongest growth year over year among the top-tier vendors, with 20.4% revenue growth for the quarter (see Table 1). EMC maintained the No. 1 spot overall, finishing the quarter at 25.5%. Hewlett-Packard was the only vendor to lose revenue in the third quarter, dropping by 11.9%, while retaining the No. 3 spot behind IBM. IBM maintained the No. 2 spot with a market share of 14.8%, while increasing its revenue by 17.9% year over year. Hitachi/HDS also experienced 17.9% revenue growth year over year, maintaining its No. 4 ranking with a 10.8% share of the market. Dell and NetApp were at No. 5 and 6, respectively, each with a 7.3% market share. Sun Microsystems fell to the No. 7 spot with 5.3% market share.

The industry showed a dramatic increase in the sale of add-on storage capacity compared with the sale of new units. “While a portion is attributable to seasonal fluctuations, the majority of the capacity growth is the result of buyer compliance with Sarbanes-Oxley regulations requiring not only data retention but retrieval as well,” said Donna Taylor, principal analyst for Gartner’s global Storage Quarterly Statistics program.

Table 1
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 3Q06
(Millions of U.S. Dollars)


Company

3Q06 Revenue

3Q06 Market Share (%)

3Q05 Revenue

3Q05 Market Share (%)

3Q05-3Q06 Change (%)

EMC *

953.9

25.5

812.5

23.3

17.4

IBM

553.1

14.8

469.3

13.5

17.9

Hewlett-Packard

475.1

12.7

539.1

15.5

-11.9

Hitachi/HDS **

402.7

10.8

341.6

9.8

17.9

Dell

272.2

7.3

261.4

7.5

4.1

NetApp

272.2

7.3

226.1

6.5

20.4

Sun Microsystems

196.5

5.3

185.2

5.3

6.1

Others

616.1

16.5

647.3

18.6

-4.8

Total

3,741.8

100.0

3,482.5

100.0

7.4

Note* EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
Note ** Hitachi/HDS revenue excludes OEM revenue from HP and Sun Microsystems.
Source: Gartner Dataquest (December 2006)

Smaller vendors’ market share continued to decline, a trend driven, in part, by industry consolidation, but also in response to Tier 1 vendor’s product and marketing efforts in attracting new customers, while retaining their current clientele. The top 7 vendors accounted for 83.5% of worldwide ECB revenue in the third quarter of 2006, up 2.1% from last year.

Gartner’s external controller-based 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 (SAN) infrastructure components are excluded.

Additional information on the ECB disk storage market is available in the Gartner Dataquest report “Market Share: Disk Array Storage, All Regions, All Countries, 1Q05-3Q06.” The report includes vendor market share by data access method, price band, channel and operating system segmentation. The report is available on Gartner’s Web site.

 

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