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PRESS RELEASES
2005 Press Releases


 Back to 2005 Press Releases


STAMFORD, Conn., September 26, 2005 - Worldwide external controller-based (ECB) disk storage revenue totaled $3.54 billion in the second quarter 2005, a six percent increase over the same period of 2004, according to Gartner, Inc.

Dell and Network Appliance experienced the strongest revenue growth rates in the second quarter of 2005 (see Table 1). Dell gained market share and produced the largest growth rate in second quarter 2005 with a revenue increase of 31 percent. Network Appliance continued its quarterly year-over-year growth of over 20 percent.

"Dell's growth was fueled by Dell/EMC co-branded products, mainly the CX300 and AX100 series," said Roger W. Cox, vice president in the storage research group at Gartner. "NetApp revenue growth in the second quarter actually slowed somewhat because of a lengthier customer evaluation period for the new FAS 3000 series. NetApp continues to dominate the network-attached storage and unified storage market with 55 percent revenue share."

Table 1
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 2Q05
(Millions of U.S. Dollars)

Company 2Q05 Revenue 2Q05 Market Share (%) 2Q04 Revenue 2Q04 Market Share (%) 2Q04-2Q05 Revenue Change (%)
EMC1 824.2 23.3 744.6 22.4 10.7
Hewlett-Packard 588.9 16.6 532.5 16.0 10.6
IBM 504.5 14.3 431.2 13.0 17.0
Hitachi/HDS2 285.7 8.1 252.7 7.6 13.1
Dell 255.5 7.2 195.6 5.9 30.6
Sun Microsystems 242.7 6.9 260.2 7.8 -6.7
Network Appliance 221.8 6.3 183.3 5.5 21.0
Others 614.6 17.4 728.1 21.9 -15.6
Total 3,537.9 100.0 3,328.1 100.0 6.3

1 EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
2 Hitachi/HDS revenue excludes OEM revenue from HP and Sun.
Source: Gartner Dataquest (September 2005)


EMC is the No. 1 vendor based on revenue. It increased its market share by nearly one point to 23 percent in the second quarter of 2005 compared to the same period in 2004. EMC's revenue growth was driven by CLARiiON and Centera products.

Hewlett-Packard carried its positive growth trend into the second quarter of 2005. It grew its market share slightly year over year. "The refreshed Enterprise Virtual Array (EVA), in association with general strength in the entry-level disk array market and improvement in worldwide field execution, are contributing to Hewlett-Packard's positive results in the hotly contested external controller-based disk storage market," Mr. Cox said.

Supported by strong DS8000/DS6000 revenue growth, as well as a rebound in DS4000 midrange disk array revenue, IBM realized a year-over-year revenue gain of 17 percent, increasing its market share by more than one point compared to the second quarter of 2004.

Hitachi/HDS was able to stop its market share erosion in the second quarter of 2005 and gained share slightly. However, the percentage of high-end disk array (TagmaStore USP and Lightning) revenue to total revenue continues to increase, signaling that Hitachi/HDS is unable to take advantage of the high growth midrange disk array market.

Sun continued its revenue decline, although the second quarter decline rate is not as steep as in the first quarter. The strengthening of Sun's midrange disk array portfolio and worldwide field sales initiatives are were not able to offset weakness in the high-end disk array market.

In the European Middle East and African (EMEA) region, the ECB disk storage revenue totaled $1.1 billion in the second quarter of 2005, eight percent increase over the same period of 2004.

Table 2
EMEA External Controller-Based Disk Storage Vendor Revenue Estimates for 2Q05
(Millions of U.S. Dollars)

Company 2Q05 Revenue 2Q05 Market Share (%) 2Q04 Revenue 2Q04 Market Share (%) 2Q04 - 2Q05 Growth (%)
EMC 245.6 22.3 213.3 20.9 15.2
Hewlett-Packard 241.6 21.9 229.9 22.5 5.1
IBM 169.8 15.4 165.2 16.2 2.8
Sun Microsystems 91.2 8.3 107.1 10.5 -14.8
Dell Inc. 76.3 6.9 48.8 4.8 56.4
NetApp 64.7 5.9 61.3 6.0 5.5
HDS/Hitachi 61.8 5.6 42.8 4.2 44.5
Others 151.5 13.7 151.7 14.9 -0.2
EMEA Total 1,102.5 100.0 1,020.0 100.0 8.1

Source: Gartner Dataquest (September 2005)

Dell continued to improve its penetration in EMEA, recording another consecutive quarter of over 50 percent growth. It is also ranked fifth this quarter stepping up from the seventh place in the first quarter of 2005, benefiting from the strength of the company's Dell and EMC CX series sales. For the second consecutive quarter since Gartner began reporting ECB market shares, EMC remained the leader in EMEA - historically a stronghold for Hewlett-Packard (Compaq). EMC maintained his lead in the second quarter of 2005 with 22.3 percent market shares, taking advantage of decreased quarterly HP sales of their StorageWorks EVA and XP products.

On a regional basis, Hewlett-Packard lead in the Asia/Pacific market with 22.2 percent market share whilst Hitachi head in Japan with 27.6 percent market share.

Additional information on the external controller-based disk storage market is available in the Gartner Dataquest report "All Major Storage Vendors Except Sun Experienced Double-Digit Revenue Growth in 2Q05.".

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