WW Total Disk Storage Systems Revenue Declines 5% in 2Q13 – IDC

Worldwide external disk storage systems factory revenues posted a year-over-year decline of -0.8%, totaling just over $5.9 billion, in 2Q13, according to the International Data Corporation‘s Worldwide Quarterly Disk Storage Systems Tracker.

For the quarter, the total (internal plus external) disk storage systems market generated $7.7 billion in revenue, representing a -5.0% decline from the prior year’s second quarter and a slight sequential decline compared to the first quarter of 2013. Total disk storage systems capacity shipped reached 8.2EBs, growing 21.5% year over year.

"Once again, spending on disk systems varied considerably by region," said Eric Sheppard, research director, storage. "Emerging markets experienced increases in demand while spending within mature markets, including the United States, Western Europe, Canada, and Japan, fell when compared to the same quarter a year ago. This reduced demand is creating a very competitive environment and a general deterioration in pricing, which seems to worsen market conditions."

2Q13 External Disk Storage Systems Results
EMC increased its lead in the external disk storage systems market with 31.3% revenue share during the quarter, followed by NetApp and IBM in a statistical tie for the number two position with 13.3% and 12.6% market share, respectively. HP captured the third position with 10.0% market share while Dell and Hitachi finished in a statistical tie for fourth with 7.6%, and 7.1% market share, respectively.

Open Networked Disk Storage Systems Highlights
The total open networked disk storage market (NAS combined with non-mainframe SAN) grew 0.2% year over year during the quarter to about $5.2 billion in revenues. EMC continues to maintain its leadership in the total open networked storage market with 34.1% revenue share, followed by NetApp with 15.2% revenue share.

In the open SAN market, which declined -0.6% year over year, EMC was the leading vendor with 29.7% revenue share, followed by IBM in second with 15% market share. HP and NetApp accounted for 13.0% and 9.5% of sales, respectively. The NAS market increased 2.5% year over year, led by EMC with 46.3% revenue share and followed by NetApp with a 30.8% share.

 WW External Disk Storage Systems Factory Revenue
                       (Revenues in $million)

 (Source: IDC Worldwide Quarterly Disk
 Storage Systems Tracker, September 6, 2013)

Note: IDC declares a statistical tie in the worldwide disk storage market when there is less than one% difference in the factory revenues of two or more vendors.

2Q13 Total Disk Storage Systems Market Results
In the total worldwide disk storage systems market, EMC finished in the top position followed by HP with market shares of 24.2% and 16.9% respectively.

    WW Total Disk Storage Systems Factory Revenue
                       (Revenues in $million)

 (Source: IDC Worldwide Quarterly Disk
 Storage Systems Tracker, September 6, 2013)

            WW Total Disk Storage Systems Market,
                     Top 5 Vendors 2Q12-2Q13
                       (shares based on revenue)

 (Source: IDC Worldwide Quarterly Disk
 Storage Systems Tracker, September 6, 2013)

Taxonomy Notes:

• IDC defines a disk storage system as a set of storage elements, including controllers, cables, and (in some instances) HBAs, associated with three or more disks. A system may be located outside of or within a server cabinet and the average cost of the disk storage systems does not include infrastructure storage hardware (i.e. switches) and non-bundled storage software.
• The information in this quantitative study is based on a branded view of the disk storage systems sale. Revenue associated with the products to the end user is attributed to the seller (brand) of the product, not the manufacturer. OEM sales are not included in this study. In this study, HDS sales do not reflect their OEM sales to Sun Microsystems and Hewlett-Packard.

Worldwide Quarterly Disk Storage Systems 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, gigabyte/unit, and average selling value. Each criteria can be segmented by location, installation base, OS, vendor, family, model, and region.