Disk sales spin is slowing, IDC Says. (Storage News Review).
In the first quarter of 2003 revenue for disk storage systems was $4.8bn, down 1% year-on-year. That was far less than the 8% year-on-year fall seen in the same quarter of 2002, and it followed a 2002 fourth quarter rally in which revenue rose 8% sequentially.
IDC concluded that the market "shows buoyancy" and that the first quarter year-on-year gains indicate "a continued trend toward stabilization in overall market spending." The researcher's most recent estimates are that disk-system spending fell by 15% in 2002, and by 21% in 2001.
A disk storage system is defined by IDC as including three or more disk drives that may be located inside or outside of a server box. Reflecting the tumbling price of storage, IDC said that the total capacity shipped in the first quarter was 176PB, up nearly 49% on the capacity shipped in the same quarter last year. That is equivalent to a drop of around 33% in price per-megabyte year-on-year.
The proportion of disk systems that end up as network storage--either as NAS or part of a SAN or both--is increasing. It represented more than half of all revenue for the first time in the first quarter, reaching 53%, up from 48% last year.
There were no significant shifts in vendors' market shares during the first quarter. HP led with a 26% share, IBM came second with 19%, and EMC came third with 12%. Reflecting the success the two companies enjoyed throughout last year, Dell and IBM showed the strongest year-on-year growth among the top five suppliers, with 38% and 17% respectively.
The smaller market for external disk storage systems saw a 3% fall in revenue year-on-year, IDC said.