IDC Reports Worldwide Disk Storage Market Declines in Second Quarter, But North America Shows Growth for Second Consecutive Quarter

FRAMINGHAM, MA – SEPTEMBER 5, 2003 – Worldwide disk storage systems factory revenues were $4.73 billion in the second quarter of 2003, down 3.9% compared with the second quarter of 2002, according to IDC's Worldwide Disk Storage Systems Quarterly Tracker. Overall storage capacity continues to outpace revenue, growing 36% year-over-year to 181.6 petabytes shipped during the second quarter.

"This is the second quarter of growth in North America, an indication of a turnaround in that region," said John McArthur, group vice president of Storage Research at IDC. "At the same time, we saw significant declines in Asia, particularly in Japan. The results are decidedly mixed, providing no indication of a near-term, global recovery in the disk storage systems market."

In the second quarter, HP led the total disk storage system market, with 26.7% revenue share, followed by IBM and EMC with 20.2% and 12.7% revenue share, respectively. IBM and Dell posted the strongest year-over-year market share gain during the second quarter among the top 5 vendors, with 2.5 and 1.5 point of share gain respectively.

In the total external disk storage system market, revenue decreased 5% year-over-year in the second quarter to $3.2

billion. HP maintained its number 1 position with 21.5% revenue share. EMC was number 2 with 18.8% revenue share. Meanwhile, the total external RAID market decline less than the overall external market with 1.4% year-over-year decline to $2.87 billion. EMC led the total external RAID market with 21% revenue share and HP followed closely with 20% revenue share.

EMC continues to maintain its leadership in the total network storage market (NAS combined with Open SAN) with 27.5% revenue share, followed by HP and IBM with 24.5% and 11.4% revenue share, respectively. In the Open SAN market, which grew 12% compared to a year ago quarter, HP led with 29.7% revenue share followed by EMC with 25.0% share. In the NAS market, EMC and Network Appliance tied for the number 1 position each with 37% market share.

Top 5 Vendors, Worldwide Disk Storage Systems Factory Revenue, Second Quarter 2003

(Revenues are in Millions)

2Q03 Market 2Q02 Market Revenue

Vendor Revenue Share Revenue Share Growth

HP $1,264 26.7% $1,265 25.7% -0.1%

IBM $957 20.2% $869 17.7% 10.2%

EMC $602 12.7% $647 13.1% -6.9%

Sun $365 7.7% $414 8.4% -11.9%

Dell $334 7.1% $274 5.6% 21.7%

Others $1,208 25.5% $1,451 29.5% -16.7%


Vendors $4,730 100.0% $4,920 100.0% -3.9%

Taxonomy Notes:

IDC defines a Disk Storage System as a set of storage elements, including controllers, cables, and host bus adapters, associated with three or more disks drives (direct attach storage device [DASD]/hard disk drive [HDD]). 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.

About IDC

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