Welcome!

News Feed Item

Weak High-End Demand Results in Worldwide External Disk Storage Systems Revenue Falling at Rates Not Seen Since 2009, According to IDC

Worldwide external disk storage systems factory revenues fell -5.2% year over year to $5.6 billion during the first quarter of 2014 (1Q14), according to the International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total (internal plus external) disk storage systems market generated $7.3 billion in revenue, representing a decrease of -6.9% from the prior year's first quarter and a sequential decline of -17% compared to the seasonally stronger 4Q13. Total disk storage systems capacity shipped was 9.9 exabytes, growing just 19.9% year over year.

"The poor results of the first quarter were driven by several factors, the most important of which was a -25% decline in high-end storage spending," said Eric Sheppard, Research Director, IDC Storage. "Other important contributors to the market decline include the mainstream adoption of storage optimization technologies, a general trend towards keeping systems longer, economic uncertainty, and the ability of customers to address capacity needs on a micro and short-term basis through public cloud offerings."

1Q14 External Disk Storage Systems Results

EMC was the largest supplier, but experienced a year-over-year share loss during the quarter. The company captured 29.1% of the external disk storage revenue during the quarter, which was down from 30.2% the year prior. NetApp was the second largest supplier in the market with 15.1% share of external revenue (up from 14.8% in 1Q13). HP, IBM, and Hitachi finished the quarter in a statistical tie* for the third position with shares of 8.8%, 8.8% and 8.7% respectively. Dell was the sixth largest supplier of external storage, generating 7.3% of the revenue during the quarter.

Open Networked Disk Storage Systems Highlights

The total open networked disk storage market (NAS Combined with non-mainframe SAN) fell -3.9% year over year to $4.9 billion in revenue. EMC maintained its leadership in the total open networked storage market with 31.5% revenue share, but lost share compared to the 33.4% the company generated in 1Q13. NetApp was the second largest supplier with 17.3% share, followed by HP (8.9%), IBM (8.6%), and Hitachi (8.3%), all of whom tied* for third place.

Top 5 Vendors, Worldwide External Disk Storage Systems Market, First Quarter of 2014

(Revenues are in Millions)

Vendor 1Q14 Revenue   1Q14 Market Share   1Q13 Revenue   1Q13 Market Share   1Q14/1Q13 Revenue Growth
1. EMC $1,640   29.1%   $1,798   30.2%   -8.8%
2. NetApp $854   15.1%   $879   14.8%   -2.8%
3. HP* $498   8.8%   $501   8.4%   -0.7%
3. IBM* $497   8.8%   $642   10.8%   -22.5%
3. Hitachi* $493   8.7%   $529   8.9%   -6.8%
Others $1,659   29.4%   $1,599   26.9%   3.7%
All Vendors $5,642   100.0%   $5,949   100.0%   -5.2%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, June 5, 2014

* Note: IDC declares a statistical tie in the worldwide disk storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

1Q14 Total Disk Storage Systems Market Results

In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 22.4% and 15.1% respectively.

Top 5 Vendors, Worldwide Total Disk Storage Systems Market, First Quarter of 2014

(Revenues are in Millions)

Vendor 1Q14 Revenue   1Q14 Market Share   1Q13 Revenue   1Q13 Market Share   1Q14/1Q13 Revenue Growth
1. EMC $1,640   22.4%   $1,798   22.9%   -8.8%
2. HP $1,108   15.1%   $1,204   15.3%   -8.0%
3. Dell* $871   11.9%   $1,074   13.7%   -19.0%
3. NetApp* $854   11.7%   $879   11.2%   -2.8%
5. IBM $743   10.1%   $934   11.9%   -20.5%
Others $2,107   28.8%   $1,973   25.1%   6.8%
All Vendors $7,323   100.0%   $7,862   100.0%   -6.9%

Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, June 5, 2014

* Note: IDC declares a statistical tie in the worldwide disk storage systems market when there is less than one percent difference in the revenue share of two or more vendors.

In addition to the table above, an interactive graphic showing the worldwide market share of the top 5 total disk storage systems vendors over the previous five quarters is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

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 Lidice Fernandez at 305-351-3051 or [email protected].

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...