All sectors do well during second quarter, company says.

Worldwide external disk storage systems factory revenues posted year-over-year growth of 20.4 percent, totaling just over $5 billion, in the second quarter of 2010 (2Q10), according to the International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total disk storage systems market grew to $6.8 billion in revenues, representing 20.7 percent growth from the prior year's second quarter. Total disk storage systems capacity shipped reach 3,645 petabytes, growing 54.6 percent year over year.

"The first half of 2010 showed continued signs of economic recovery in the disk storage systems market," said Liz Conner, senior research analyst, Storage Systems. "The external disk storage systems market grew 18.6 percent from the first half of 2009 in terms of factory revenue and 3.0 percent from the second half of 2009. Although the first half of 2009 was extremely weak due to the economic crisis, the gain from a relatively strong second half of 2009 shows continued customer investment and importance placed in the storage systems market."

Total External Disk Storage Systems

EMC maintained its lead in the external disk storage systems market with 25.7 percent revenue share in the second quarter, followed by IBM in second with 13.6 percent market share. NetApp and HP are in a statistical tie* for third place with 11.4 percent and 11.3 percent market share respectively. Dell ended in the fifth position with 9.4 percent market share. Given the recent interest in 3PAR, IDC notes that for 2Q10, 3PAR’s share in the total external disk storage systems market was 0.78 percent.

Open Networked Disk Storage Systems

The total open networked disk storage market (NAS Combined with Open / iSCSI SAN) grew 29.2 percent year over year in the second quarter to $4.2 billion in revenues. EMC continues to maintain its leadership in the total open networked storage market with 28.9 percent revenue share, followed by NetApp with a 13.6 percent revenue share.

In the Open SAN market, which grew 21.8 percent year over year, EMC was the leading vendor with 21.8 percent revenue share, followed by IBM in second and HP in third with 15.9 percent and 14.8 percent share, respectively.

The NAS market grew 51.1 percent year over year, led by EMC with 45.6 percent revenue share and followed by NetApp with 25.2 percent share. The iSCSI SAN market continues to show strong momentum, posting 49.0 percent revenue growth compared to the prior year's quarter. Dell led the market with 32.9 percent revenue share, followed by HP, NetApp, and EMC, all in a statistical tie* for second, with 14.2 percent, 13.4 percent, and 13.3 percent market share respectively.

"The recent economic crisis had greatly affected the upper mid-range and high-end storage market," said Amita Potnis, senior research analyst, Storage Systems. "The second quarter saw a good recovery of the upper mid-range (PB $100K-$249.99K) and high-end (PB $250K+) storage market with year-over-year growth of 30.5 percent. The recovery in this segment was driven by NAS and SAN system sales, which grew 58.4 percent and 30.2 percent respectively, exceeding the overall market growth. It appears, however, that the market is heading toward a more cautious growth path going forward."

 

Top 5 Vendors, Worldwide External Disk Storage Systems Factory Revenue, Second Quarter of 2010 (Revenues are in Millions)

Vendor	2Q10 Revenue	2Q10 Market Share	2Q09 Revenue	2Q09 Market Share	2Q10/2Q09 Revenue Growth
1. EMC	$1,287	25.7 percent	$915	22 percent	40.6 percent
2. IBM	$680	13.6 percent	$614	14.7 percent	10.9 percent
3. NetApp	$571	11.4 percent	$368	8.8  percent	55.3 percent
3. HP	$567	11.3 percent	$469	11.3 percent	20.9 percent
5. Dell	$472	9.4 percent	$403	9.7  percent	17.0 percent
Others	$1,439	28.6 percent	$1,397	33.5 percent	3.0 percent
All Vendors	$5,016	100 percent	$4,166	100 percent	20.4 percent

Source: IDC Worldwide Disk Storage Systems Quarterly Tracker, September 3, 2010

* Notes:

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.

Starting in Q3 2009, EMC is reported as the combined entity of EMC and Data Domain. Starting in Q2 2010, HP is reported as the combined entity of HP and H3C.

Total Disk Storage Systems Market

In the total worldwide disk storage systems market, HP and EMC finished in a statistical tie* for the top position, in terms of market share, with HP at 19.3 percent market share and EMC at 19.0 percent market share.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory Revenue, Second Quarter of 2010 (Revenues are in Millions)

Vendor	2Q10 Revenue		2Q10 Market Share	2Q09 Revenue	2Q09 Market Share	2Q10/2Q09 Revenue Growth
1. HP	$1,307	19.3 percent		$980	17.4 percent		33.3 percent
1. EMC	$1,287	19.0 percent		$915	16.3 percent		40.6 percent
3. IBM	$1,072	15.8 percent		$981	17.5 percent		9.3 percent
4. Dell	$832	12.3 percent		$676	12.0 percent		22.9 percent
5. NetApp	$571	8.4 percent		$368	6.5 percent		55.3 percent
Others	$1,715	25.2 percent		$1,699	30.3 percent		0.9 percent
All Vendors	$6,783	100 percent		$5,648	100.0 percent		20.7 percent

 

Source: IDC Worldwide Disk Storage Systems Quarterly Tracker, September 3, 2010

* Notes:

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.

Starting in Q3 2009, EMC is reported as the combined entity of EMC and Data Domain. Starting in Q2 2010, HP is reported as the combined entity of HP and H3C.

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 Disk Storage Systems Quarterly 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 Disk Storage Systems Quarterly Tracker, please contact Hoang Nguyen at 508-935-4718 or This email address is being protected from spambots. You need JavaScript enabled to view it..