IDC Finds Enterprise Storage Connectivity Chip Sales Growing Healthier Due To Increased SAN Adoption

FRAMINGHAM, MA – JUNE 23, 2003 – According to a new report by IDC, the storage connect semiconductor market is expected to grow 9% year-over-year in 2003 to reach $490 million, and will post a 15% compound annual growth rate (CAGR) to reach $906 million by 2007. Growth expectations throughout the forecast will be driven by increased demand for 1/2/4 Gbps and 10 Gbps Fibre Channel host bus adapters (HBAs) and SAN switching infrastructure systems along with continued deployment of RAID storage to support increased capacity and higher availability demands.

IDC finds the IP SAN semiconductor market will also be on the rise as improvements made over the next few years spark deployment as a Fibre Channel SAN extension for large corporate environments. More important, however, will be the growth of iSCSI within small and medium businesses where "greenfield" SAN adoption will occur. Meanwhile, within the RAID controller storage connect segment, the study finds that Serial ATA (SATA) and Serial Attached SCSI (SAS) will steadily displace parallel SCSI as the primary hard disk drive interface technology used within enterprise servers and disk array systems.

"We believe the underlying silicon that will be created at the heart of these new storage connect subsystem and infrastructure designs will act as a disruptive force in the market," said Sean Lavey, program manager with IDC. "Future adoption of these next generation products will result in significant architectural shifts that alters the way enterprise storage is built and deployed going forward."

IDC's Worldwide Enterprise Storage Connectivity Semiconductor Forecast and Analysis, 2002-2007 (IDC #29566) study examines all ASSP/ASICs and embedded processors going into direct attached storage (DAS), network attached storage (NAS), and storage area networking (SAN) equipment markets. An overview of the semiconductor vendors that play a role in the market today is also included.

For more information on this report or IDC's Semiconductor research program, or to purchase this document, call IDC's sales hotline at 508-988-7988 or email

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