Worldwide Disk Storage Systems Market Grew 12% Sequentially in Q4 2002, According to IDC

FRAMINGHAM, MA – MARCH 7, 2003 – Worldwide disk storage systems factory revenue was $5.4 billion in the fourth quarter of 2002, up 12% compared with the third quarter of 2002, according to IDC. With the strong sequential growth, full year 2002 revenue was better than expected, declining only 15% compared to 2001 versus a forecasted decline of 21%.


"The fourth quarter’s results were similar to what we have seen in the server market," said John McArthur, group vice president of Storage Research at IDC. "We expect to see a return to more normal seasonal changes as companies have already made their major adjustments to storage spending."

In this highly consolidated market, competition continued to be fierce during the quarter, resulting in several statistical ties. In the fourth quarter, HP and IBM statistically tied for the number 1 position, each with 25% revenue share. In addition, there was a three-way statistical tie for the number 4 position between Sun Microsystems, Dell and Hitachi, although Sun Microsystems posted the strongest growth among the three with 17% sequential growth from Q3 2002.

In the total external storage system market, revenue increased 12% sequentially in the fourth quarter. HP maintained its number 1 position with 21% revenue market share. IBM and EMC, tied for second, each with 17% revenue share. There was a similar scenario in the total external RAID market, where HP and EMC tied for the number 1 position, each with 19% of the revenue share.

"In 2003, vendors will continue to bring to market more compelling business and product strategies, including the introduction of new components and storage network technologies," said Charlotte Rancourt, research director in IDC’s Disk Storage Systems program. "As a consequence, we expect to see further fluctuation in vendor market share in 2003."

The Open SAN market outperformed the overall market, with 14% sequential growth from the third quarter. The NAS market was weaker, but continues to be healthy, with 4% sequential growth. In the Open SAN market, HP led with 28% revenue share followed by EMC with 26% share. In the NAS market, Network Appliance maintained its number 1 position with 36% share followed by EMC with 33% share. EMC continues to maintain its leadership in the total network storage market (NAS combined with Open SAN) with 28% revenue share.

For the full year, HP (reported as the combined entity of Compaq and HP from Q2 2002 going forward) edged out IBM for the number 1 position with 21% revenue share for the total disk storage systems market. IBM and Dell posted the largest year-over-year growth among the top 5 vendors, with 15% and 13% year-over-year growth respectively.


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

(Revenues are in Millions)

Q4 2002 Revenue Market Share Q3 2002 Revenue Market Share Revenue Growth Q3/Q4


HP $1,372 25% $1,293 27% 6%

IBM $1,340 25% $1,000 21% 34%

EMC $614 11% $505 10% 22%

Sun Microsystems $297 6% $255 5% 17%

Dell $287 5% $278 6% 3%

Hitachi $258 5% $277 6% -7%

Others $1,233 23% $1,206 25% 2%

All Vendors $5,402 100% $4,814 100% 12%

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

and Compaq


Top 5 Vendors, Worldwide Disk Storage Systems Factory Revenue, full year 2002

(Revenues are in Millions)

2002 Revenue Market Share 2001 Revenue Market Share Revenue Growth 2002/2001


HP $4,283 21% $1,790 8% 139%

IBM $3,994 20% $3,473 15% 15%

EMC $2,382 12% $3,803 16% -37%

Sun Microsystems $1,276 6% $1,365 6% -7%

Dell $1,086 5% $959 4% 13%

Hitachi $1,069 5% $1,559 7% -31%

Compaq $997 5% $4,381 19% -77%

Others $4,867 24% $6,168 26% -21%

All Vendors $19,954 100% $23,499 100% – 15%

NOTE: Hewlett-Packard and Compaq are combined Q2 2002 to Q4 2002.

Compaq is separate in Q1 2002.

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, Gibabyte/Unit and Average Selling Value. Each criteria can be segmented by location, installation base, operating system, vendor, family, model, and region.