Revenue up from global disk storage systems

Analyst claims increase stresses the importance of storage in improving business efficiency

Revenue from global disk storage systems grew by 6.7 per cent to $5.8bn during the first quarter of 2006, according to IDC.

According to the research firm’s Worldwide Disk Storage Systems Quarterly Tracker, revenue from the global external disk storage systems market also grew by 10.3 per cent to $4.2bn, compared with the same quarter last year. The total number of disk storage systems shipped grew by 51.5 per cent to 627 petabytes during Q1.

Brad Nisbet, programme manager at IDC storage systems, said: “Despite the server market falling by nearly two per cent in Q1 2006, the comparable positive growth of external disk systems highlights the importance of storage in helping customers improve overall business efficiency.”

EMC maintained its leadership of the global external disk storage systems market. It had 21.8 per cent market share and $911m turnover during the quarter. However, Hewlett-Packard surpassed EMC in terms of total disk storage systems revenue with 8.5 per cent revenue growth (to $1.3bn), and a 22.9 per cent share of the market. IBM was second, EMC third and Dell fourth in terms of market share.

Natalya Yezhkova, senior research analyst at IDC storage systems, said: “Data protection, digital content and emerging data-intensive applications are driving market growth, mainly for mid-range systems.”

Astley Gayle, product manager for UK and Ireland at storage distributor CMS Peripherals, told CRN: “It is hard for vendors to generate revenue if they are outside the top four, unless they can dominate a niche area.

“The channel should either work with one dominant vendor or split themselves between a dominant and strong niche vendor.”

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