External Disk Storage Systems Achieves Record Growth in the Third Quarter of 2005, IDC Finds

FRAMINGHAM, MA – December 2, 2005 – According to IDC's Worldwide Disk Storage Systems Tracker, factory revenue in the external disk storage systems market grew a record 12.5% year over year to $3.9 billion in the third quarter of 2005, the highest growth recorded since the inception of IDC's disk storage tracker in 2001. The total worldwide disk storage systems market also grew at a record year-over-year rate of 13.3% to $5.7 billion in the third quarter of 2005. Total disk storage petabytes grew 58% year over year in the third quarter, eclipsing half an exabyte for the first time at 505 petabytes.

"This is the third consecutive quarter that disk storage systems revenue growth has outpaced that of the server market," said Brad Nisbet, program manager in IDC's Storage Systems program. "However, internal storage growth has exceeded external growth in three of the last four quarters, as organizations explore new technologies that increase the flexibility of storage configurations."

Total External Disk Storage Systems

EMC maintained its lead in the external disk storage systems market with 20.3%, followed by HP and IBM with 19.1% and 12.9% revenue share, respectively. Hitachi improved its share position to end the quarter in a virtual tie with Dell for the fourth position with 8.3% revenue share versus 8.4% for Dell.

Network Disk Storage Systems

The total network storage market (NAS combined with Open and iSCSI SAN) increased 17.1% year over year in the third quarter to nearly $2.5 billion. EMC continues to maintain its leadership in the total network storage market with 27.2% revenue share, followed by HP with 21.5%.

The Open/iSCSI SAN market grew 19.6% year over year and is still above $2.0 billion in revenue. EMC and HP continue to vie for the first place position, but remain in a statistical tie. HP had 25.0% revenue share and EMC had 24.2% revenue share for the third quarter.

In the NAS market, which grew 7.5% year over year, EMC maintained its 40% revenue share, followed by Network Appliance with 35.1% share. The iSCSI SAN market doubled again with 105% revenue growth year over year. Network Appliance continues to lead the market with 35.1% share, followed by EMC with 24.0% share. HP made the strongest share gain, increasing its iSCSI SAN revenue share from nearly zero to almost 10% in the third quarter from a year ago.

Top 5 Vendors, Worldwide External Disk Storage Systems Factory Revenue, Third Quarter 2005

(Revenues are in Millions)

Vendor Q3 2005

Revenue Market

Share Q3 2004

Revenue Market

Share Revenue

Growth

EMC $786 20.3% $735 21.3% 7.0%

HP $740 19.1% $645 18.7% 14.7%

IBM $499 12.9% $415 12.0% 20.2%

Dell $325 8.4% $243 7.1% 33.5%

Hitachi $321 8.3% $289 8.4% 11.1%

Others $1,207 31.1% $1,120 32.5% 7.8%

All Vendors $3,878 100.0% $3,447 100.0% 12.5%

Source: IDC, December 1, 2005

Total Disk Storage Systems Market – Internal plus External

In the total worldwide disk storage systems market, HP maintained its lead with 23.5% revenue share followed by IBM with 20.7% share. EMC maintained the third position with 13.7% revenue share.

Top 5 Vendors, Worldwide Total Disk Storage Systems Factory Revenue, Third Quarter 2005

(Revenues are in Millions)

Vendor Q3 2005

Revenue Market

Share Q3 2004

Revenue Market

Share Revenue

Growth

EMC $1,348 23.5% $1,178 23.3% 14.4%

HP $1,188 20.7% $992 19.6% 19.7%

IBM $786 13.7% $735 14.5% 7.0%

Dell $477 8.3% $364 7.2% 30.8%

Hitachi $330 5.7% $298 5.9% 10.7%

Others $1,611 28.1% $1,496 29.5% 7.7%

All Vendors $5,739 100.0% $5,064 100.0% 13.3%

Source: IDC, December 1, 2005

Taxonomy Notes: