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To: Johnny Canuck who wrote (40206)	9/5/2003 6:15:35 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69860

IDC: Storage revenue edges downward By Dinesh C. Sharma Special to CNET News.com September 5, 2003, 1:40 PM PT The worldwide disk storage market saw both gains and losses in the second quarter of 2003, according to market researcher IDC. Global revenue declined to $4.73 billion in the second quarter, down slightly from $4.8 billion in the first quarter and down 3.9 percent compared with the second quarter of 2002. Revenue fell despite 36 percent year-over-year growth in storage capacity to 181.6 petabytes shipped during the second quarter. (One petabyte is equal to a million gigabytes.) "We saw significant declines in Asia, particularly in Japan," John McArthur, group vice president of storage research at IDC, said in a statement. "The results are decidedly mixed, providing no indication of a near-term, global recovery in the disk storage systems market." IDC did point to positive indications in one part of the globe. "This is the second quarter of growth in North America, an indication of a turnaround in that region," McArthur said. Other analysts have noted signs of strength in the storage industry. Investment firm RBC Capital Assets last month said factors at play include an increase in the amount of data to be stored, cost reductions in network storage offerings, and the drive by corporations to reduce data center costs by consolidating servers and storage. In the IDC report, Hewlett-Packard led the pack, cornering 26.7 percent share of the market, up slightly from the second quarter of 2002. HP's revenue, however, declined marginally to $1.26 billion. In the second spot was IBM, which saw its market share increase to 20.2 percent from 17.7 percent in same period last year and its revenue rise from $869 million to $957 million. With 12.7 percent share of the market, EMC came in third, with revenue declining from $647 million in second quarter 2003 to $602 million. Among top five vendors, IBM and Dell recorded the strongest year-over-year market share increase during the second quarter, with 2.5 and 1.5 percentage point gains, respectively. The IDC study also looked at various segments of the market. In the external disk storage segment, revenue decreased 5 percent year over year in the second quarter to $3.2 billion. HP maintained its top position with 21.5 percent revenue share, followed by EMC at 18.8 percent. The decline in the external RAID (redundant array of independent disks) segment was less than that in the overall external market, with a 1.4 percent year-over-year decline to $2.87 billion. EMC's revenue share of this market was 21 percent, while HP was only a little bit behind that at 20 percent. IDC did not break out revenue numbers by region.