Disk-storage systems revenue jumped 11.9 per cent globally in 1998 compared to the previous year, reaching a five-year peak, according to a new study by market research firm International Data Corp (IDC).
More moderate growth of 8.4 per cent is predicted by IDC for this year because the 1998 buying spree appears to be over and because companies will re-deploy storage space that had been given over to year 2000 computer bug testing. Corporations also are likely to continue delaying discretionary IT purchases until after January 1 of next year. After 1999, however, IDC anticipates that disk-storage systems revenue will leap back to double digits.
The disk-storage systems market now has worldwide revenues of $US27.7 billion, IDC found in its Disk Storage Systems Year-in-Review bulletin. The top seven vendors, which have 67.9 per cent of the total disk-storage systems market, picked up just .6 per cent of a share last year. But IDC has forecast that those vendors will reach a higher combined market share this year as more companies require storage systems.
Compaq captured 20 per cent of the market to overtake long-time leader IBM. Compaq surged ahead with its acquisition of Digital Equipment. The 20 per cent market share amounts to $US5.5 billion in global revenue.
IBM dropped to second place with a 14.3 per cent market share and global revenues of almost $US4 billion, IDC found.
EMC remained in third spot with 11.5 per cent of the market in 1998. It registered 1.7 per cent revenue growth and $US3.2 billion in annual worldwide disk-storage systems revenue. EMC also had its first $US1 billion quarter in the third quarter of last year.
Dell Computer won a 3.4 per cent share of the market with $US946 million in worldwide revenue and finished seventh. But Dell appears poised for growth because its shipments are overwhelmingly for Windows NT and NOS, operating environments that IDC predicts will have the highest growth rate in the disk-storage systems market from 1998 to 2002.