Gartner: HP's third quarter storage numbers drop

Gartner: HP's third quarter storage numbers drop

Hewlett-Packard Co.'s third quarter disk storage sales fell, while rivals' grew, Gartner said in a report Tuesday.

Major storage vendors reported double-digit sales growth in the third quarter with the exception of HP, which suffered a double-digit decline.

HP sales of external controller-based disk storage slumped by 11.9 per cent from the year ago quarter to $US475 million in the three months that ended September 30, according to a report out from research firm, Gartner.

HP trailed market share leader EMC, whose 17.4 per cent revenue gain to $US954 million earned it a 25.5 per cent market share. IBM ranked second with a 14.8 per cent share, as its revenue grew 17.9 per cent to $US553.1 million. While HP held onto third place, its market share slipped to 12.7 per cent from 15.5 per cent in the third quarter of 2005.

Dell (10.8 per cent) ranked fourth and Hitachi Data Systems (7.3) was fifth.

The storage vendor with the strongest growth was sixth-ranked Network Appliance (7.3), which saw sales jump 20.4 per cent to $US272 million.

Sun Microsystems (5.3) trailed the pack. In the third quarter, Sun completed its first year of StorageTek ownership, which it acquired for $US4.1 billion.

Overall, the global market for disk storage grew 7.4 per cent from the year ago quarter to $US3.74 billion.

HP aside, Gartner said the major vendors strengthened their place in the market in the third quarter through some consolidation and enhanced marketing efforts.

HP CEO, Mark Hurd, alluded to weak storage sales in a quarterly financial conference call with investment analysts. HP's storage sales grew only 1 per cent in it's fiscal fourth quarter, which ended October 31, the weakest of any of its product lines.

"Our growth profile of our storage business is negatively impacted by our mix toward the declining tape market," Hurd said. "We are not happy with our storage growth in the fourth quarter and we need to do a better job of driving top line momentum in the coming year."

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