Top Disk Storage Vendors See Revenue Declines

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Top Disk Storage Vendors See Revenue Declines

By: Mike Sachoff
2009-06-05

Sales of disk storage systems saw an 18.2 percent decline in the first quarter of 2009, compared to the prior years first quarter, according to market researcher IDC.

"The disk storage system vendors are really seeing the impact of the global economic downturn in the first quarter revenues," said Steve Scully, research manager, Enterprise Storage at IDC.

"However, while total revenues declined year over year, the overall storage capacity shipped continued to grow. These contrasting results are due to a combination of currency implications, lower overall sales, shifts in product mix, and aggressive pricing actions."

EMC held on to its lead in the disk storage systems market with 20.7 percent revenue share in the first quarter, followed by HP and IBM in a statistical tie for the second position with 11.5 percent and 11.3 percent revenue share respectively. Dell and Hitachi finished the quarter in a statistical tie for fourth place with 9.8 percent and 9.4 percent revenue share respectively.

All vendors in the top five saw declines in first quarter revenue growth. HP was hit hardest dipping 19.6 percent for $482 million compared to the first quarter of 2008. EMC saw a decline of 16 percent for $871 million followed by IBM with a 15 percent drop for $476 million in revenue.

"Although the economic crisis was fully realized by the enterprise storage systems market in the first quarter of 2009, the quarter wasn't without its bright spots," said Liz Conner, research analyst, Storage Systems. "Entry-level price bands ($0K - $14.99K) showed 9.9% year-over-year growth and the midrange price band ($15K - $49.99K) was flat year over year, supporting IDC's belief that storage products are still in demand, with customer spending trending towards more modular, price point options."

"In addition, the high-end price band ($300K-499.99K) saw a 14.5% year-over-year growth as vendors discounted their very high-end products, shifting the ASV's into lower price bands in order to meet the demand for high-end storage while accounting for reduced IT budgets."

View All Articles by Mike Sachoff

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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