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Worldwide E-C-B Disk Storage Grew 0.6 Percent in Q1-2013

Worldwide external controller-based (ECB) disk storage vendor revenue totaled $5.5 billion in the first quarter of 2013, a 0.6 percent increase from revenue of $5.4 billion in the first quarter of 2012.

The Q1 results show the 14th quarter of growth. "However, facing the strong headwinds of a morose global macro-economy, the 0.6 percent increase is the slowest year-over-year growth rate since the fourth quarter 2009." said Roger Cox, research vice president at Gartner.

EMC, Fujitsu, Hitachi/Hitachi Data Systems (HDS) and NetApp all beat the year-on-year market growth rate in the first quarter (see Table 1).

 

Despite a negative revenue performance by EMC's midrange portfolio, EMC gained share based on the strength of its high-end VMAX, which grew 11.5 percent annually. Leveraging its year-end fiscal quarter, Fujitsu's focus on its Eternus-branded ECB disk storage products in EMEA beat market growth in all segments of the block-access market. In a reversal of historic patterns, Hitachi/Hitachi Data Systems gained share in the first quarter of 2013 based on the performance of its midrange offerings, in particular the HUS Series and Hitachi Content Active Platform, while its high-end VSP fell short. Noting that clustered Data Ontap is gaining increased traction within its installed base and as a competitive alternative, NetApp displaced IBM as the second-largest ECB disk storage vendor in the first quarter of 2013.

Table 1

Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 1Q13 (Millions of U.S. Dollars)

Company

1Q13

Revenue

1Q13 Market Share (%)

1Q12

Revenue

1Q12 Market Share (%)

1Q12-1Q13

Change (%)

EMC1

1,808.8

33.0

1,770.2

32.5

2.2

NetApp2

714.8

13.1

691.5

12.7

3.4

IBM

584.2

10.7

600.4

11.0

-2.7

Hitachi/HDS3

527.9

9.6

518.3

9.5

1.9

HP

466.9

8.5

491.5

9.0

-5.0

Dell

407.9

7.5

431.4

7.9

-5.4

Fujitsu4

187.4

3.4

143.9

2.6

30.3

Oracle

54.0

1.0

70.4

1.3

-23.2

Huawei

52.7

1.0

-

-

-

Others

669.1

12.2

724.7

13.3

-7.7

Total

5,473.7

100.0

5,442.1

100.0

0.6

Note 1: EMC revenue excludes OEM revenue from Dell and Fujitsu Technology Solutions.

Note 2: NetApp revenue excludes Ontap OEM revenue from IBM and Engenio OEM revenue.

Note 3: Hitachi/HDS revenue excludes OEM revenue from HP.

Note 4: Fujitsu's branded revenue does not include products sold under the EMC and NetApp brands.

Note: In 1Q12, Huawei was included in the Others category.

Source: Gartner (June 2013)

Dell, HP and IBM continue to underperform the market and lose share for fundamentally the same reasons. Their new product year-over-year revenue gains are insufficient to offset the year-over-year decline of the products being replaced. Moreover, Dell may be suffering from organizational and structural issues that are hampering sales. HP continues to struggle with balancing the decline in what it classifies as "traditional storage" with its growing "converged" go-to-market models. IBM's strategy of emphasizing its IP-based disk storage products is gaining traction, but is not yet strong enough to offset declines in technology sourced from NetApp.

On a regional basis, EMEA remains in the grasp of a recession and grew only 1.7 percent in the first quarter of 2013 (see Table 2). North America suffered from a deadlock between its executive and legislative branches of government, which impacted growth in the quarter. Asia/Pacific macros, particularly in China, are losing luster, which slowed growth to 1.7 percent in the first quarter of 2013.

Region

1Q13

Revenue

1Q13 Market Share (%)

1Q12

Revenue

1Q12 Market Share (%)

1Q12-1Q13

Change (%)

North America

2,502.2

45.7

2,498.0

45.9

0.2

EMEA

1,567.9

28.6

1,613.5

29.6

1.7

Asia/Pacific

752.5

13.7

739.9

13.6

1.7

Japan

461.6

8.4

436.9

8.0

5.7

Latin America

189.5

3.5

153.8

2.8

23.3

Total

5,473.7

100.0

5,442.1

100.0

0.6

Source: Gartner (June 2013)

Gartner has added Huawei to its list of worldwide ECB disk storage vendors that are included in the "Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 1Q13 Update" report. Huawei has a complete portfolio of ECB disk storage systems and is gaining worldwide notice.

Gartner ECB disk storage reports reflect vendor-branded hardware-only revenue, as well as hardware revenue associated with financial leases and managed services. Optional and separately priced storage software revenue and storage area network infrastructure components are excluded.

Additional information on the ECB disk storage market is available in the Gartner "Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 1Q13 Update." The report includes vendor market share by data access method, price band, sales channel and operating system segmentation. The report is available on Gartner's website

STAMFORD, Conn., June 13, 2013 —