Worldwide Disk Storage Systems Factory Revenues Climbed 1% Sequentially in Second Quarter, According to IDC

FRAMINGHAM, MA – SEPTEMBER 18, 2002 – The worldwide disk storage systems market gained 1% sequentially in factory revenue in the second quarter of 2002 to $4.7 billion, according to IDC. This also marked the first time that IDC reported Hewlett-Packard (HP) results based upon the combined entity of HP and Compaq. HP's acquisition of Compaq allowed it to lead the market with 25% of total disk storage systems revenue. The merger also allowed HP to pull ahead of EMC to take the number one position in external-only disk storage systems sales with 20% market share.


"The disk storage systems market has been greatly impacted by the downturn in the U.S. economy over the last year and half. We are currently on track for a double-digit decline year over year. However, this small quarterly increase, combined with a slowing in the rate of price decline, indicates that the disk storage systems market may have reached bottom and should have a stronger foundation for growth over the next few years," said John McArthur, Group Vice President of IDC's Storage program. Overall, Sun Microsystems and IBM posted the largest increases in total storage revenue over Q1 2002, with 32% and 11% gains, respectively, while Dell benefited from its partnership with EMC, growing 10% in revenue over Q1.

"SAN and NAS segments continue to be the bright spots in the market, with each segment showing 4% sequential revenue growth," said Charlotte Rancourt, Research Director of IDC's Disk Storage Systems program. EMC maintained its number-one position in both SAN and NAS revenue, with 29% and 38% market share, respectively.

Terabytes continue to outpace revenue with 11% sequential growth, which, however, was well below the growth rates seen in 1999 and 2000. HP held a strong lead with 30% of total terabytes shipped in Q2. The total disk storage systems market shipped almost 120,000 terabytes, with external terabytes contributing 58% of the total. EMC, with 24% market share, continued to lead in external terabytes shipped. "We see ongoing price pressure on the disk storage systems market as the average dollar per gigabyte fell 9% from Q1," said Eric Sheppard, Senior Research Analysts in IDC's Disk Storage Systems program, "but the

rate of price decline was less than the prior quarter-over-quarter decline."

Top 5 Vendors, Worldwide Disk Storage Systems Factory Revenue, Second Quarter 2002

(Revenues are in Millions)

Market Q1 2002 Market Sequential

Revenue Growth Vendor Revenue Share Revenue Share Q2/Q1

HP $1,171 25% $1,251 27% -6%

IBM $767 16% $692 15% 11%

EMC $643 14% $620 13% 4%


Microsystems $411 9% $313 7% 32%

Dell $272 6% $248 5% 10%

Others $1,430 30% $1,531 33% -7%

All Vendors $4,696 100% $4,655 100% 1%

NOTE: Data for Hewlett-Packard includes revenue for both Hewlett-Packard and Compaq

IDC's Worldwide Quarterly Disk Storage Systems 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, Gibabyte/ Unit and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region. For more information, please contact Hoang Nguyen at 508-935-4718 or

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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