IDC: Storage market revenue grows, HP's share shrinks

Hewlett-Packard (HP) held on to its lead in the disk storage systems market in the second quarter, but saw a decline in revenue and market share, according to a survey by market researcher IDC published Friday.

HP led the rankings for total worldwide disk storage systems factory revenue in the second quarter, but saw its revenue in this market decline 8.9 percent to US$1.15 billion, from US$1.26 billion in the year-earlier quarter, and its market share slip to 23 percent from 26.5 percent a year earlier.

IDC estimated the market for disk storage systems grew by 5 percent overall, to US$5 billion, from US$4.77 billion a year earlier. It defines the systems as an assembly of controllers, cables and host bus adapters associated with three or more disks, located either within a server or outside it.

IBM held on to second place, with disk storage system revenue growing 6.2 percent year on year to US$1.02 billion, compared to US$957 million a year earlier, and market share inching up to 20.3 percent from 20.1 percent a year earlier.

EMC made the biggest year-on-year gain in market share, moving from 12.6 percent to 14.4 percent, according to IDC, but remained in third place with its disk storage system revenue for the quarter up 19.5 percent to US$719 million from US$602 million a year earlier.

Sun Microsystems's revenue and market share declined, but with disk storage system revenue of US$379 million it remained just ahead of Dell, which notched up the biggest year-on-year revenue growth rate in the survey, 21.7 percent, taking its disk storage system revenue to US$365 million from the year-earlier figure of US$300 million.

IDC broke out figures for the market for external disk storage systems, where EMC topped the table with market share of 20.7 percent and revenue of US$719 million. HP came second, although its market share slipped to 18.2 percent from 21.4 percent a year earlier, and its revenue from this sector slipped 8.3 percent to US$631 million. IBM stayed in third place with revenue of US$471 million, up 4.7 percent year on year. Sun and Hitachi Data Systems almost tied for fourth place in this sector, with revenue of US$282 million, down 2 percent, and US$281 million, up 4.7 percent, respectively. Other vendors accounted for the remaining 31.4 percent of this market, which IDC estimates is worth US$3.48 billion, up 8 percent on the year-earlier quarter.

IDC counts revenue based on the brand under which systems are sold, not the manufacturer, so for example Hitachi's sales do not reflect the equipment bought by Sun and HP for resale under their own brands.

Fellow analyst firm Gartner also released storage figures last week. According to its figures EMC led but it was followed by HP and then IBM.

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