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EMC Lags Hot Q3 Storage Market, IDC Reports

Posted by iNext - 2005-12-05

EMC remained the leading vendor in networked storage category during the third quarter of 2005, but its share of the overall storage market lost ground to rivals IBM and Hewlett-Packard, according to IDC.

EMC was the leading generator of revenue in the worldwide external disk storage system, external RAID, networked storage and NAS markets, according to the latest report from the IT market research firm.

Hewlett-Packard was the leading producer of SANs, including iSCSI SANs, and kept its lead in the overall disk storage system market thanks to the strength of its server-attached storage.

The overall disk storage market revenue reached $5.7 billion in the third quarter, up more than 13 percent from the same quarter a year ago, IDC reported.

HP and IBM solidified their No. 1 and No. 2 positions, both with revenue that grew faster than that of No. 3 EMC.

However, when figuring in the disk storage sales of Dell, which relies on products from EMC, the picture is a little different. HP had revenue for the quarter of $1.348 billion, up 14.4 percent from last year, compared to IBM's $1.188 billion, up 19.7 percent. However, the combined sales of EMC and Dell, who's revenue grew a blistering 30.8 percent, totaled $1.263 billion, putting the two in second place behind HP.

The worldwide external disk storage market reached $3.8 billion in the third quarter. EMC was the leading vendor with sales of $786 million, up 7 percent for a 20.3 percent share of the market, IDC reported. HP, at No. 2, saw its revenue in external disk storage rise 14.7 percent to give it a 19.1 percent share. Following those vendors were IBM with a 12.9 percent share, Dell with 8.4 percent and Hitachi with 8.3 percent.

In the NAS space, EMC kept its No. 1 spot over Network Appliance, with sales of $192 million vs. $169 million. The two combined accounted for more than 75 percent of the NAS market, which overall hit $481 million during the quarter, up 7.5 percent over last year.

Sun Microsystems, which has traditionally far behind its competition in storage despite having a large server business, this quarter found some help with its StorageTek acquisition. That acquisition helped Sun grow its disk storage system business nearly 19 percent, its external RAID business more than 16 percent, its networked storage business more than 40 percent, and its NAS business nearly 145 percent, IDC said. Overall, Sun was the No. 6 vendor, with sales of $261 million, up 5.8 percent thanks to StorageTek.



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