External Disk Storage Systems Market Records Fourth-Highest Quarterly Revenue in Third Quarter, According to IDC

FRAMINGHAM, MA – December 03, 2010 – Worldwide external disk storage systems factory revenues posted year-over-year growth of 19.0%, totaling slightly less than $5.2 billion in the third quarter of 2010 (3Q10), according to the International Data Corporation (IDC) Worldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total disk storage systems market grew to nearly $7.0 billion in revenues, representing 18.5% growth from the third quarter of 2009. Total disk storage systems capacity shipped reach 4,299 petabytes, growing 65.2% year over year.

"Users are still making up for their reduced storage spending in 2009 as the third quarter recorded the fourth highest revenues in a single quarter for external disk storage systems," said Liz Conner, senior research analyst, Storage Systems. "The increased investment by end users and vendors alike in iSCSI SAN and NAS (41.4% and 49.8% year-over-year growth respectively) has helped fuel the overall growth, while easing budget constraints sparked a pickup in FC SAN and higher end systems alike."

Total External Disk Storage Systems

EMC maintained its lead in the external disk storage systems market with 26.1% revenue share in the third quarter, followed by IBM in second with 12.9% market share. NetApp and HP are in a statistical tie* for third place with 11.6% and 11.1% market share respectively. Dell ended in the fifth position with 9.1% market share. Given the recent acquisitions of 3PAR and Isilon, IDC notes that for 3Q10, 3PAR's and Isilon's share in the total external disk storage systems market was 0.83% and 0.75% respectively.

Open Networked Disk Storage Systems

The total open networked disk storage market (NAS Combined with Open / iSCSI SAN) grew 26.4% year over year in the second quarter to $4.3 billion in revenues. EMC continues to maintain its leadership in the total open networked storage market with 30.0% revenue share, followed by NetApp with a 14.0% revenue share.

In the Open SAN market, which grew 18.5% year over year, EMC was the leading vendor with 23.0% revenue share, followed by IBM in second and HP in third with 15.5% and 14.3% share, respectively.

The NAS market grew 49.8% year over year, led by EMC with 46.6% revenue share and followed by NetApp with 28.9% share. The iSCSI SAN market continues to show strong momentum, posting 41.4% revenue growth compared to the prior year's quarter. Dell led the market with 33.8% revenue share, followed by EMC and HP, in a statistical tie* for second, with 13.8% and 13.7% market share respectively.

"The economic crisis of 2009 and commensurate budget reductions compelled end users invest in lower-priced storage systems that still offer enterprise-level features," said Amita Potnis, senior research analyst, Storage Systems. "Although most IT budget restraints have been lifted, the trend toward lower-priced systems continued into 2010 as revenues for external storage systems in the lower price bands ($0-$24.99k) increased by 21.1% year over year. End-users keep looking to get the most for their money, while vendors continue to invest resources to develop storage systems that meet this need."

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

Quarter of 2010

(Revenues are in Millions)


3Q10 3Q09 3Q10/3Q09

3Q10 Market 3Q09 Market Revenue

Vendor Revenue Share Revenue Share Growth

———— ———– ———– ———— ———– ———–

1. EMC $1,351 26.1% $1,053 24.2% 28.3%

———— ———– ———– ———— ———– ———–

2. IBM $667 12.9% $581 13.4% 14.7%

———— ———– ———– ———— ———– ———–

3. NetApp $601 11.6% $388 8.9% 54.9%

———— ———– ———– ———— ———– ———–

3. HP $575 11.1% $517 11.9% 11.3%

———— ———– ———– ———— ———– ———–

5. Dell $471 9.1% $407 9.4% 15.6%

———— ———– ———– ———— ———– ———–

Others $1,511 29.2% $1,402 32.2% 7.7%

———— ———– ———– ———— ———– ———–

All Vendors $5,176 100.0% $4,348 100.0% 19.0%

———— ———– ———– ———— ———– ———–

Source: IDC Worldwide Disk Storage Systems Quarterly Tracker, December 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