External Storage Experiences Strong Growth

External Storage Experiences Strong Growth

By Greg McNevin

June 5th, 2006: According to IDC research, worldwide external disk storage systems factory revenues have grown by 10.3% over the last year to U.S.$4.2 billion.

IDC's Worldwide Disk Storage Systems Quarterly Tracker has also found that the total disk storage systems market has grown by 6.7% to U.S.$5.8 billion.

“Customers continue to increase their reliance on business data and seek cost effective ways to store, protect, and manage this critical data,” says Brad Nisbet, program manager for IDC Storage Systems. “Despite the server market being down nearly 2% in the first quarter of 2006, the comparable positive growth of external disk systems points to the importance of storage in helping customers improve overall business efficiency.”

IDC also found that EMC has maintained its lead in the external disk storage systems market with a 21.8% share. HP and IBM were next with 17.9% and 12.0% respectively, Dell and Hitachi finished up the top five with 8.2% and 8.1%.

In the network disk storage systems arena, the total market (NAS Combined with Open and iSCSI SAN) experienced 15.4% year-over-year growth in the first quarter to reach more than $2.8 billion.

EMC has maintain its lead here with a 28.7% market share. HP and IBM follow with 19.3% and 10.7%. IBM and Network Appliance however, have both posted the strongest year-over-year revenue growth in the top five, with 22.6% and 24.4% growth respectively.

EMC is leading the NAS market with 37.1% share while Network Appliance has continued to lead the iSCSI SAN market with 29.7% share.

“The high-end segment (systems priced at $500,000 and over) showed the strongest year-over-year growth of nearly 40%,” says Natalya Yezhkova, senior research analyst, IDC Storage Systems. “Although data protection, digital content and other emerging data-intensive applications are driving market growth mainly for midrange systems, demand for highly-scalable primary storage also remains strong indicating the ongoing consolidation within corporate data centres.”

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