WW External Disk Storage Market Grew 10% From 3Q07 to 3Q08

Worldwide external controller-based (ECB) disk storage revenue totaled $4.3 billion in the third quarter of 2008, a 10 percent increase over the same period in 2007, according to Gartner, Inc.

EMC maintained the No. 1 spot overall, finishing the quarter at 26.1 percent market share (see Table 1). IBM was in second place with 13 percent of the market, followed by Hewlett-Packard with 11.3 percent. NetApp showed the highest growth year-over-year at 21.1 percent showing strong growth in the FAS2000 Series. Dell had the next highest growth with 12.6 percent. Also recording double digit growth was EMC with 11.7 percent and Hitachi Data Systems at 10.7 percent. Sun Microsystems grew by 6.1 percent.

On a regional basis, Latin America showed the highest growth at 15.8 percent year-over-year followed by EMEA, Asia Pacific and Japan at 12.6 percent, 11.5 percent and 6.2 percent, respectively. ECB revenue in North America grew 8.4 percent year-over-year.

“Maintaining double-digit growth year-on-year is significant given the current economic conditions,” said Robin Burke, research vice president for Gartner’s global Storage Quarterly Statistics program. “However, when comparing the second and third quarters of 2008 all regions showed single-digit negative growth. Worldwide growth was minus 4.5 percent sequentially while North America was minus 3.1 percent .”

 Worldwide External Controller-Based Disk Storage
 Vendor Revenue Estimates for 3Q08
 (Millions of U.S. Dollars)

Note* EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
Note ** Hitachi/HDS revenue excludes OEM revenue from HP and Sun Microsystems.
(Source: Gartner, December 2008)

Gartner external controller-based disk storage reports reflect hardware only revenue, as well as hardware revenue associated with financial leases and managed services. Optional storage software revenue and storage area network infrastructure components are excluded.