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Disk sales spin is slowing, IDC Says. (Storage News Review).

Disk array revenue is stabilizing after the major falls it took over the last two years, and networked storage now accounts for more than half of all sales, according to IDC's latest quarterly disk tracker report.

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.
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Publication:MarketWatch: Storage
Date:Jun 24, 2003
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