Worldwide Disk Storage Systems Factory Revenues Decline 3% Sequentially In Third Quarter, According to IDC

FRAMINGHAM, MA – DECEMBER 6, 2002 – Worldwide disk storage systems factory revenue was $4.7 billion in the third quarter of 2002, down 3% compared with the second quarter of 2002, according to IDC. Overall, HP maintains its total storage revenue leadership with 27% share, followed by IBM with 20% share. Hitachi, LTD and IBM had the strongest sequential quarterly revenue growth, with 23% and 7% respectively.


"The failure to gain revenue momentum in Q3 is yet another indication that a rebound in the disk storage systems market is not imminent,"said Charlotte Rancourt, research director of IDC’s Disk Storage Systems program. "The third quarter is consistent with an emerging trend whereby growth in gigabyte per unit does not offset the unrelenting decline in dollar per gigabyte."

The NAS and Open SAN storage market declined more in revenue than the overall market, 10% and 6% sequentially. Competition continues to be healthy, however, resulting in a number of market leadership changes. Network Appliance took the lead in the NAS storage market with 38% revenue share, while EMC, the leader for the past several quarters, fell to the number 2 position this quarter with 31% share. In the Open SAN storage market, HP edged out EMC for the number 1 position with 30% revenue share, while EMC followed with 27% share. EMC continues to maintain its leadership in the total network storage market (NAS combined with Open SAN) with 28% revenue share.

"Customers took advantage of the scalability of installed SAN and NAS solutions to increase capacity at lower cost," said John McArthur, group vice president of Storage Research at IDC. "The declining revenue picture can sometimes be misleading. The trend towards networked storage continues, which means that suppliers have to look beyond revenue to see that capacity growth of networked storage exceeds the growth of direct-attached storage."

The total external storage market (networked storage plus external direct attached storage) declined 5% sequentially to $3.2 billion in the third quarter from the previous quarter. HP maintains it leadership with 22% revenue share, followed by EMC and IBM with 15.8% and 14.6% share, respectively. Within the highly watched total external RAID storage market, which was down 5% sequentially in revenue, HP took the number 1 position with 19.6% revenue share while EMC followed closely behind with 18.1%.


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

(Revenues in Millions)


Q3 2002


Q2 2002


Sequential Revenue Growth