WW External Disk Storage Market Grew 0.6% in 1Q13 – Gartner

Worldwide external controller-based (ECB) disk storage vendor revenue totaled $5.5 billion in the first quarter of 2013, a 0.6% increase from revenue of $5.4 billion in the first quarter of 2012, according to Gartner, Inc.’s Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 1Q13 Update.                                                                     

"The first quarter 2013 results represent the 14th consecutive quarter of revenue growth," said Roger Cox, research VP Gartner. "However, facing the strong headwinds of a morose global macro-economy, the 0.6% increase is the slowest year-over-year growth rate since the fourth quarter 2009."

EMC, Fujitsu, Hitachi/Hitachi Data Systems (HDS) and NetApp beat the year-over-year market growth rate in the first quarter.

Despite a negative revenue performance by EMC’s midrange portfolio, EMC gained share based on the strength of its high-end VMAX, which grew 11.5% annually.

Leveraging its year-end fiscal quarter, Fujitsu’s focus on its Eternus-branded ECB disk storage products in EMEA beat market growth in all segments of the block-access market.

In a reversal of historic patterns, HDS gained share in 1Q13 based on the performance of its midrange offerings, in particular the HUS Series and Hitachi Content Active Platform, while its high-end VSP fell short.

Noting that clustered Data Ontap is gaining increased traction within its installed base and as a competitive alternative, NetApp displaced IBM as the second-largest ECB disk storage vendor in the first quarter of 2013.

   
WW External Controller-Based Disk Storage Revenue
                                  by Vendors
                                  (in $ million)

 (Source: Gartner, June 2013)
1: EMC revenue excludes OEM revenue from Dell and Fujitsu Technology Solutions.
2: NetApp revenue excludes Ontap OEM revenue from IBM and Engenio OEM revenue.
3: Hitachi/HDS revenue excludes OEM revenue from HP.
4: Fujitsu’s branded revenue does not include products sold under the EMC and NetApp brands.
Note: In 1Q12, Huawei was included in the Others category.

Dell, HP and IBM continue to underperform the market and lose share for fundamentally the same reasons. Their new product Y/Y revenue gains are insufficient to offset the Y/Y decline of the products being replaced. Moreover, Dell may be suffering from organizational and structural issues that are hampering sales. HP continues to struggle with balancing the decline in what it classifies as ‘traditional storage’ with its growing ‘converged’ go-to-market models. IBM’s strategy of emphasizing its IP-based disk storage products is gaining traction, but is not yet strong enough to offset declines in technology sourced from NetApp.

On a regional basis, EMEA remains in the grasp of a recession and grew only 1.7% in the first quarter of 2013 . North America suffered from a deadlock between its executive and legislative branches of government, which impacted growth in the quarter. AsiaPac macros, particularly in China, are losing luster, which slowed growth to 1.7% in the first quarter of 2013.

    
WW External Controller-Based Disk Storage Revenue
                                  by Region
                                  (in $ million)
                       
 (Source: Gartner, June 2013)

Gartner has added Huawei to its list of worldwide ECB disk storage vendors. Huawei has a complete portfolio of ECB disk storage systems and is gaining worldwide notice.

ECB disk storage reports reflect vendor-branded hardware-only revenue, as well as hardware revenue associated with financial leases and managed services. Optional and separately priced storage software revenue and storage area network infrastructure components are excluded.

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