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Title:
DISK STORAGE SYSTEMS MARKET POSTS HIGHEST
ANNUAL GROWTH RATE IN FIVE YEARS,
Summary:
According to IDC Top 7 Disk Storage System Suppliers
Steer the Market
Source:
PR Newswire
Date:
11-Jan-1999 16:38
Price:
Free
Document Size:
Very Short (856 words)
Document ID:
FN19990111220000020
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Document Type:
Press releases
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DISK STORAGE SYSTEMS MARKET POSTS HIGHEST ANNUAL GROWTH
RATE IN FIVE YEARS,
Story Filed: Monday, January 11, 1999 04:38 PM EST
According to IDC
Top 7 Disk Storage System Suppliers Steer the Market
FRAMINGHAM, Mass., Jan. 11 /PRNewswire/ -- A newly released Disk Storage Systems
Year-In-Review bulletin from International Data Corporation (IDC) estimates that in 1998 disk storage
system revenues have climbed to their highest point in five years at 11.9% growth over 1997. This now
brings the total disk storage systems market to a value of $27.7 billion in revenue. John McArthur,
Director of IDC's Storage Systems Research group, says, "More than any prior year, 1998 was a year
for focus on the Storage Business for server and network solutions suppliers." He adds, "Shrinking
server margins, EMC's success, and the realization that the server companies had a captive distribution
channel that was underutilized, led many to focus on storage and associated software and services."
The top seven disk storage system suppliers now command 67.9% of the
total disk storage systems market, gaining a modest .6% share in 1998.
However, IDC believes that these leaders will exit 1999 with an even
greater combined share, as the need for innovative storage solutions
increases. IDC also expects that the rate of revenue growth will
moderate in 1999 to 8.4% as a result of heavy buying in 1998, the
re-deployment of storage that was used for Y2K testing, and an overall
desire of users to delay discretionary purchases until after January 1,
2000. Looking beyond 1999, IDC expects that storage system revenue
growth rates will bounce back to double digits. This upward trend will
shift supplier focus on reducing the total cost of ownership of storage
solutions.
Supplier Positioning
With the purchase of Digital, Compaq surges ahead as the
indisputable leader with a sizable 20% share, representing $5.5 billion
in worldwide revenues.
Because of the Compaq-Digital merger, long-time first place holder IBM dropped to second position in
disk system revenue in 1998. At 14.3% share, IBM had worldwide revenues totaling near $4 billion in
1998.
EMC fortified its position as number three in disk storage systems revenue and saw its first billion-dollar
quarter in revenues in 3Q98. Now at 11.5% share, EMC had the greatest momentum with 1.7% revenue
share growth to reach $3.2 billion in worldwide revenues.
With a new Network Storage Division created in 1998, Sun retained its number four spot and grew to
$1.9 billion in worldwide revenues, representing 7% share.
Due to increased storage capabilities for its server families, Hewlett-
Packard grew to 6.6% share, representing $1.8 billion in worldwide
revenues. Revenue for Hitachi was flat in 1998, owing to heavy
discounting and the decline in the Japanese economy. The company faces
some challenges in developing a distribution strategy outside of the
current direct sales force. Hitachi ended 1998 with 5.1%, and $1.4
billion in worldwide revenues. Dell raised its position in 1998 to join
the billion dollar storage club with 3.4% share and $946 million in
worldwide revenues. Dell's shipments consist almost entirely of
Windows NT (2000) and NOS, the two operating environments for which IDC
expects the highest growth rate in disk storage systems from 1998-2002.
Worldwide Disk Storage Systems Revenue
Rank 1997 1998 Annual
Growth
($M) ($M) (%)
1 Compaq/Digital 4,944 5,536 11.9
2 IBM 3,910 3,968 1.5
3 EMC 2,433 3,192 31.2
4 Sun 1,672 1,931 15.5
5 HP 1,586 1,824 15.0
From an operating systems perspective, Windows NT (2000) will
remain the fastest growing market with 30% compound annual growth rate
forecast from 1998 through 2002. In 2002, Windows NT (2000) will become
the largest disk storage systems market with a 38.6% share of the
revenue. Unix, growing at a more modest compound annual growth rate of
8.8%, will fall to second place, but will still capture 35% of total
disk storage systems revenue in 2002. For more information or to
purchase this bulletin (#B18096), Year in Review, 1998: Disk Storage
Systems, call Cheryl Toffel at 1-800-343-4952, ext. 4389. IDC's Web
site (
www.idc.com) contains additional company information,
recent news releases, and offers full-text searching of the latest
available research.
About IDC
International Data Corporation is the information technology
industry's most comprehensive resource on worldwide IT markets, trends,
products, vendors, and geographies. IDC provides data, analysis and
advisory services to the world's leading IT suppliers as well as IS
professionals in finance, insurance, entertainment, advertising,
consumer goods and publishing. IDC's research and opinions are based on
the results of more than 300,000 end-user surveys, in-depth competitive
analysis, broad technology coverage, and strategic analysis. IDC is
committed to providing global research with local content through its
500 analysts in more than 40 countries worldwide. Additional
information on IDC can be found on its Web site at
www.idc.com.
IDC is a division of International Data Group, the world's leading IT media, research and exposition
company.
All product and company names may be trademarks or registered trademarks of their respective
holders. SOURCE International Data Corporation
01/11/99 /CONTACT: John McArthur, 508-935-4615, jmcarthur@idc.com or Robert Gray, 508-935-4201,
rgray@idc.com or Christina Casey, 508-935-4622, ccasey@idc.com, all of IDC/
/Company News On-Call: www.prnewswire.com/comp/113987.html or fax, 800-758-5804, ext. 113987/
/Web site: www.idc.com/ CO: International Data Corporation ST: Massachusetts IN: CPR SU:
Copyright © 1999, PR Newswire, all rights reserved. |
