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History 2003: WW External Disk Storage Falls 24% in 2002, Headed by HP

CAGR forecasts to be 1.1% from 2002 through 2006.

The total WW external disk storage systems market is expected to decline by 23.7% in 2002, indicates a recent report from IDC Corp.

The total external disk storage systems market CAGR is forecast to be 1.1% from 2002 through 2006.

Hewlett-Packard was expected to be the largest supplier of external storage systems in 2002, capturing 18% of market revenue.

The report also forecasts 2002 supplier revenue for external disk storage systems of $13.3 million, a Y/Y decline of 23.7%, exceeding the 2001 to 2000 decline of 20.8%.

But, in term of capacity, a contrario, terabytes grow about 35% in 2002.

Despite increased unit and terabyte volume, IDC believes disk storage system revenues will decline a minimum of 4% in 2003, as reductions in dollar per gigabyte fail to offset the increase in consumption of capacity.

While it is essential that vendors continue to review, and perhaps revamp, their value proposition, a focus upon customer satisfaction and increasing efficiency will be critical elements of financial success in 2003. Opportunities for incremental cost reduction for the vendors include: embedding component cost and manufacturability considerations into the engineering design process, outsourcing for vendors who presently manufacture in-house, developing incentive programs to encourage channels to promote the sales of midtier products.

History Idc Disk Storage 2002

This article is an abstract of news published on issue 180 on January 2003 from the former paper version of Computer Data Storage Newsletter.

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