Worldwide External Disk Storage Systems Factory Revenue Declines for the Second Consecutive Quarter, According to IDC

Business Wire

FRAMINGHAM, Mass.--(BUSINESS WIRE)--

Worldwide external disk storage systems factory revenues posted a year-over-year decline of -0.8%, totaling just over $5.9 billion, in the second quarter of 2013 (2Q13), according to the International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total (internal plus external) disk storage systems market generated $7.7 billion in revenue, representing a -5.0% decline from the prior year's second quarter and a slight sequential decline compared to the first quarter of 2013. Total disk storage systems capacity shipped reached 8.2 exabytes, growing 21.5% year over year.

"Once again, spending on disk systems varied considerably by region," said Eric Sheppard, Research Director, Storage. "Emerging markets experienced increases in demand while spending within mature markets, including the United States, Western Europe, Canada, and Japan, fell when compared to the same quarter a year ago. This reduced demand is creating a very competitive environment and a general deterioration in pricing, which seems to worsen market conditions."

2Q13 External Disk Storage Systems Results

EMC increased its lead in the external disk storage systems market with 31.3% revenue share during the quarter, followed by NetApp and IBM in a statistical tie* for the number two position with 13.3% and 12.6% market share, respectively. HP captured the third position with 10.0% market share while Dell and Hitachi finished in a statistical tie* for fourth with 7.6%, and 7.1% market share, respectively.

Open Networked Disk Storage Systems Highlights

The total open networked disk storage market (NAS Combined with non-mainframe SAN) grew 0.2% year over year during the quarter to about $5.2 billion in revenues. EMC continues to maintain its leadership in the total open networked storage market with 34.1% revenue share, followed by NetApp with 15.2% revenue share.

In the Open SAN market, which declined -0.6% year over year, EMC was the leading vendor with 29.7% revenue share, followed by IBM in second with 15% market share. HP and NetApp accounted for 13.0% and 9.5% of sales, respectively. The NAS market increased 2.5% year over year, led by EMC with 46.3% revenue share and followed by NetApp with a 30.8% share.

Top 6 Vendors, Worldwide External Disk Storage Systems Factory Revenue, Second Quarter of 2013

(Revenues are in Millions)

                   
Vendor    

2Q13
Revenue

   

2Q13 Market
Share

   

2Q12
Revenue

   

2Q12 Market
Share

   

2Q13/2Q12
Revenue

Growth

1. EMC     $1,860     31.3%     $1,823     30.4%     2.1%
T2. NetApp*     $789     13.3%     $727     12.1%     8.6%
T2. IBM*     $747     12.6%     $770     12.8%     -3.0%
3. HP     $594     10.0%     $641     10.7%     -7.5%
T4. Dell*     $454     7.6%     $469     7.8%     -3.1%
T4. Hitachi*     $424     7.1%     $484     8.1%     -12.4%
Others     $1,084     18.2%     $1,088     18.1%     -0.4%
All Vendors     $5,952     100.0%     $6,002     100.0%     -0.8%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, September 6, 2013
* Note: IDC declares a statistical tie in the worldwide disk storage market when there is less than one percent difference in the factory revenues of two or more vendors.

2Q13 Total Disk Storage Systems Market Results

In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 24.2% and 16.9% respectively.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory Revenue, Second Quarter of 2013

(Revenues are in Millions)

                   
Vendor    

2Q13
Revenue

   

2Q13 Market
Share

   

2Q12
Revenue

   

2Q12 Market
Share

   

2Q13/2Q12
Revenue
Growth

1. EMC     $1,860     24.2%     $1,823     22.5%     2.1%
2. HP     $1,298     16.9%     $1,555     19.2%     -16.5%
3. IBM     $1,046     13.6%     $1,262     15.6%     -17.1%
4. Dell     $968     12.6%     $924     11.4%     4.8%
5. NetApp     $789     10.3%     $727     9.0%     8.6%
Others     $1,720     22.4%     $1,795     22.2%     -4.2%
All Vendors     $7,682     100.0%     $8,085     100.0%     -5.0%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, September 6, 2013

In addition to the table above, an interactive graphic illustrating the worldwide market shares of the top 5 vendors in the total disk storage systems market over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

Taxonomy Notes:

IDC defines a Disk Storage System as a set of storage elements, including controllers, cables, and (in some instances) host bus adapters, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.

The information in this quantitative study is based on a branded view of the disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. Original equipment manufacturer (OEM) sales are not included in this study. In this study, Hitachi Data Systems (HDS) sales do not reflect their OEM sales to Sun Microsystems and Hewlett-Packard.

IDC's Worldwide Quarterly Disk Storage Systems Tracker is a quantitative tool for analyzing the global disk storage market on a quarterly basis. The Tracker includes quarterly shipments and revenues (both customer and factory), Terabytes, $/Gigabyte, Gigabyte/Unit, and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region.

For more information about IDC's Worldwide Quarterly Disk Storage Systems Tracker, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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Contact:
IDC
Eric Sheppard, 508-988-7925
esheppard@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
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