Disk storage revenues decline in Q2

Disk storage revenues decline in Q2

8.2 exabytes of storage were shipped in the quarter, a 21.5 per cent jump since last year

The disk storage systems market generated $7.7 billion in revenue in the second quarter of this year, representing a 5 per cent year-over-year decline as well as a slight sequential drop compared to the first quarter of 2013.

According to IDC' s Worldwide Quarterly Disk Storage Systems Tracker, the total amount of disk storage shipped in the second quarter reached 8.2 exabytes -- that's 8.2 million terabytes -- representing an increase of 21.5 per cent year over year.

Separate from server, desktop and laptop disk storage, factory revenues for external drive systems (such as RAIDed storage arrays) also saw a year-over-year decline of 0.8 per cent , totalling just over $US5.9 billion, in the second quarter of this year.

"Emerging markets experienced increases in demand while spending within mature markets, including the United States, Western Europe, Canada, and Japan, fell when compared to the same quarter a year ago," Eric Sheppard, IDC's research director for storage, said in a statement.

The reduced demand in mature markets is creating a competitive environment and a deterioration in disk drive pricing, "which seems to worsen market conditions," IDC said.

As is typical, EMC led the market in external disk storage sales. The company increased its lead and had a 31.3 per cent revenue share for the quarter, followed by NetApp and IBM with 13.3 per cent and 12.6 per cent market share, respectively. HP was next with 10.0 per cent market share, while Dell and Hitachi finished with 7.6 per cent, and 7.1 per cent market share, respectively.

EMC also maintained its leadership in open networked disk storage systems, which includes NAS and non-mainframe SAN. EMC took 34.1 per cent of revenue share out of a total of $5.2 billion in networked storage revenues. EMC was followed by NetApp with 15.2 per cent revenue share.

In the Open SAN market, which declined 0.6 per cent year over year, EMC was again the leading vendor with 29.7 per cent revenue share, followed by IBM in second with 15 per cent. HP and NetApp accounted for 13 per cent and 9.5 per cent of sales, respectively.

The NAS market increased 2.5 per cent year over year, led by EMC with a 46.3 per cent revenue share and followed by NetApp with a 30.8 per cent share.

Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian or subscribe to Lucas's RSS feed. His e-mail address is

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