Future for Disk-based Storage is Bright and Ample Opportunities Exist, IDC Says.

FRAMINGHAM, Mass. -- The future for disk-based storage is bright and should provide ample opportunity for differentiation and growth for a number of companies on a number of fronts, IDC believes. The major pillars underpinning IDC's growth outlook include virtualization strategies for storage and servers, compliance with numerous regulations worldwide, and the continued evolution of cost-optimized, easy-to-manage tiered storage environments.

"The foundation is in place for continued growth within the storage industry for the next several years," said Dave Reinsel, director, Storage Research at IDC. "The storage industry is responding well to the needs and desires of users, but there are still storage issues that need attention, such as data protection strategies, data migration tools, and technology transitions. These same areas also provide opportunities for established companies to differentiate themselves and for smaller ventures to meet specific market needs."

Among key trends characterizing the storage industry are the following:

--Over 50% of all storage terabytes (38% of the worldwide storage revenue) shipped in 2009 will be based on capacity-oriented disk drives.

--Worldwide shipments of external disk system terabytes are expected to increase at a 2004-2009 compound annual growth rate (CAGR) of nearly 60%, while shipments of internal terabytes will increase at a less aggressive 37% CAGR over the same period.

--Worldwide disk storage system revenue will increase from $22.6 billion in 2004 to $26.3 billion in 2009.

IDC's new study, Worldwide Disk Storage Systems 2005-2009 Forecast and Analysis: Virtualization, Regulatory Compliance, and Cost-Optimized Storage - Pillars for Future Growth, (IDC #33477) presents a comprehensive overview of the performance of the disk storage systems market, with actual data from 2002 to 2004. This study also contains forecasts and analysis of the worldwide disk storage systems market by various disk storage systems market segments through 2009, including qualitative insight to understand the current and future trends of the market. Finally, the study offers supplier shares for the years 2002-2004.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email [e-mail].

For additional information about IDC's Storage research, please contact Anne-Sophie Dankens at [e-mail].

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

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