Storage

Statistics:

Worldwide Hard Disk Drive Forecast (Thousands of Units)

2002	2003	2004	2005
219,639	262,636	302,623	330,335

Source: Gartner Dataquest (February 2004)


Top 10 Storage Management Software Vendors for 2002 Based on New License Sales
(Millions of Dollars)

Vendor	2002 Revenue	2002 Market Share (%)	2001 Revenue	2001 Market Share (%)	Growth(%)
EMC	1,205.10	25.6	1,496.10	30	-19.5
Veritas	874.1	18.6	977.3	19.6	-10.6
IBM	592.6	12.6	639.8	12.8	-7.4
Hewlett-Packard	264	5.6	268.6	5.4	-1.7
Computer Associates	235.3	5	202.9	4.1	16
Hitachi/HDS	209.7	4.5	118.5	2.4	77
Legato Systems	135.5	2.9	180.9	3.6	-25.1
BMC Software	121.7	2.6	161.3	3.2	-24.6
Network Appliance	107.1	2.3	89.4	1.8	19.8
StorageTek	106	2.3	120.1	2.4	-11.7
Others	847.4	18	734.7	14.7	15.3
Total Market	4,698.50	100	4,989.60	100	-5.8

Source:Gartner Dataquest (April 2003)


Quotes:

"'The storage management software market will continue to struggle following a year where revenue was lower than forecast. Political uncertainties continue as the war in Iraq winds down, and travel is further restricted by the SARS disease in Asia,'" said Carolyn DiCenzo, vice president for Gartner's storage group. "'Growth is returning to this market, but much more slowly than anticipated.'"

"'Storage-area network (SAN) management tools will see high growth this year, but tools to manage all storage resources in a more visual and automated way will be well-received when they become more robust,'" said DiCenzo. "'The growing use of rich media and resulting storage management implications will open a market for new file systems and replication technologies that provide new ways to manage large files.'"

"'Lack of funding for new technologies because of the economic issues of 2001 and 2002 will delay time-to-market for many new companies, slowing the rate of implementation of new product ideas,'" said DiCenzo.

Source: "Gartner Says Worldwide Storage Management Software Market to Return to Positive Growth in 2003," May 28, 2003

"While the Fibre Channel industry experienced slower growth than in previous years, any increase is a show of strength in what was another difficult year for storage products and companies," said James Opfer, research vice president for Gartner's storage research group. "In 2002, the market continued to experience extraordinary market consolidation as the four leading vendors increased their revenue share to 85 percent of the market total."

Brocade continued to maintain the No. 1 position in Fibre Channel component hardware revenue with its 2002 market share of 34 percent, up from 32 percent in 2001. Emulex reclaimed the No. 2 position with a 23 percent revenue increase. QLogic showed the strongest growth in 2002 as its revenue increased 24 percent.

Source: "Gartner Says Worldwide Fibre Channel SAN Market Grew 3 Percent in 2002," May 14, 2003

"'E-mail, video, digital imaging and audio information are contributing to a massive explosion in storage capacity,'" said Matthew Boon, principal analyst for Gartner Dataquest's Asia/Pacific Computing Platforms group. "'The demand from emerging data-heavy content technologies is being felt not just in the mature markets of the region, but from emerging markets, such as China, India, Malaysia, the Philippines, Vietnam and Indonesia.'"

"'While China today has not attained the No. 1 status when it comes to external storage, compared to the server market, we do expect China to eventually account for a larger slice of the storage pie in Asia/Pacific than South Korea,'" said Boon.

"'While HP emerged as the overall leading external storage vendor in the first half of 2002, this was largely due to revenue derived from the external direct attached storage (DAS) market,'" said Phil Sargeant, research director for Gartner's Servers and Storage research in Asia/Pacific. "'When we break down the segments, EMC was the leader in the SAN segment, while Network Appliance was the No. 1 vendor in the NAS segment for the first half of 2002.'"

Source: "Gartner Dataquest Says Asia/Pacific External Storage Market Reached $549 Million During the First Six Months of 2002," February 6, 2003

"Worldwide Fibre Channel storage area network (SAN) components revenue totaled $1.46 billion in 2001, a 13 percent increase from 2000 revenue of $1.3 billion, according to Dataquest Inc., a unit of Gartner, Inc."

"'While the Fibre Channel industry experienced slower growth than in previous years, this increase is considered a strong performance in a difficult year for storage products and companies,' said James Opfer, chief analyst for Gartner Dataquest's Storage Worldwide research group, focusing on server storage and RAID worldwide. 'In addition to extraneous factors related to economic conditions that slowed growth in 2001, Fibre Channel products were undergoing a transition from 1-Gbps to 2-Gbps products that was not completed in 2001, particularly in the area of directors and other core products.'"

"Brocade continued to maintain the No.1 position in Fibre Channel component revenue, as its 2001 market share totaled 34 percent, up from 32 percent market share in 2000. McDATA moved up to the No.2 position with a 41 percent increase. QLogic showed the strongest growth in 2001, as its revenue increased 42 percent."

Source: "Gartner Dataquest Says Worldwide Fiber Channel SAN Market Grew 13 Percent in 2001," June 11, 2002

"While disk array growth stalled in 2001, storage software continued to deliver growth as companies looked to better use the storage hardware installed. Worldwide storage software revenue reached $4.9 billion in 2001, a 3 percent increase over 2000, according to Dataquest Inc., a unit of Gartner, Inc."

"EMC continued its market leadership in 2001, as its worldwide market share grew to 30.4 percent, while its nearest rival, Veritas Software, totaled 19.8 percent (see Table 1). If the $1.6 billion in array-based software were excluded from the analysis, Veritas would be in the lead, and EMC would move to the No. 3 slot behind IBM."

"'Six of the top 10 vendors were able to grow software revenue in a very challenging year,' said Carolyn DiCenzo, chief analyst for Gartner Dataquest's storage group. 'Hitachi Data Systems, which sells its storage array software directly and through Hewlett-Packard and Sun Microsystems, saw 59.4 percent growth and made the top 10 chart for the first time.'"

Source: "Gartner Dataquest Says EMC Sustained Its Lead in the Storage Software Market in 2001," March 18, 2002

"Storage capacity demand, business continuity requirements and managed storage opportunities will drive the worldwide storage services market. The market struggled in 2001 with revenue of $25 billion, but worldwide storage services revenue is expected to start to recover this year and grow from $26 billion in 2002 to $41 billion in 2005, according to Dataquest Inc., a unit of Gartner, Inc."

"'Improving storage use rates has been the mantra of most storage managed service providers (MSPs),' said Adam Couture, senior analyst for Gartner Dataquest's IT Services program. 'One of the primary MSP value statements is that they can help their customers save money by increasing storage device utilization rates thus temporarily avoiding new storage hardware purchases. MSPs also tout more traditional outsourcing benefits, such as freeing up IT staffs from the mundane storage tasks of daily backups or delivering critical skills that individual IT departments may have difficulty bringing aboard either because of a market shortage of skilled professionals or internal hiring restrictions.'"

"'Many storage service providers are reporting strong growth in server and database backup services as well. In light of Sept. 11, enterprises are putting more emphasis on their business continuity strategies than ever before,' Couture said. 'Success with backup and recovery services can help storage MSPs and other storage service providers to demonstrate the value of storage outsourcing and ultimately lead to attaining the level of trust many clients will need before turning primary data responsibilities over to an outsider.'"

Source : "Gartner Dataquest Says Worldwide Storage Services Market Will Reach $41 Billion by 2005," February 19, 2002