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PRESS RELEASES
2005 Press Releases


 Back to 2005 Press Releases


STAMFORD, Conn., December 21, 2005 - Worldwide external controller-based (ECB) disk storage revenue totaled $3.42 billion in the third quarter of 2005, a 6.8 percent increase over the same period in 2004, according to Gartner, Inc.

EMC remained the industry leader accounting for 23.7 percent market share, a full 6.2 percentage points separating it from its nearest competitor, Hewlett Packard. However EMC was the only top-tier vendor that did not experience year-over-year double-digit growth (see Table 1).

"While the most significant gains were made in the Clariion and Centera product lines, these were not enough to propel EMC to double-digit revenue growth like the other vendors in the storage market," said Donna Taylor, principal analyst in the storage research group at Gartner. "Instead, EMC realized revenue growth of only 7 percent year-over-year."

Hewlett Packard grew its market share by just under one percent to finish the quarter at 17.5 percent, while its revenue grew 12 percent year-over-year. Dell experienced the strongest growth rate with revenue increasing 37.8 percent. Dell also overtook Network Appliance for the No. 5 position in the quarter.

IBM gained 1.6 percent market share to end the quarter at 13.6 percent. A revenue growth of almost 21 percent made it the second-fastest growth rate among the top vendors, driven primarily by its DS4000 product, as well as the introduction of its new N Series.

Table 1
Worldwide External Controller-Based Disk Storage Vendor Revenue Estimates for 2Q05
(Millions of U.S. Dollars)
Company 3Q05 Revenue 3Q05 Market Share (%) 3Q04 Revenue 3Q04 Market Share (%) 3Q04-3Q05 Revenue
Change (%)
EMC¹ 810.3 23.7 757.5 23.7 7.0
Hewlett-Packard 599.3 17.5 535.0 16.7 12.0
IBM 466.1 13.6 385.5 12.0 20.9
Hitachi/HDS² 343.5 10.0 287.0 9.0 19.7
Dell 261.4 7.6 189.7 5.9 37.8
Network Appliance 226.1 6.6 190.5 6.0 18.7
Sun Microsystems³ 185.5 5.4 155.0 4.8 19.7
Others 526.8 15.4 700.2 21.9 -24.8
Total 3,419.0 100.0 3,200.5 100.0 6.8
1 EMC revenue excludes OEM revenue from Dell and Fujitsu Siemens.
2 Hitachi/HDS revenue excludes OEM revenue from HP and Sun.
3 Sun revenue includes the full quarter's revenue for StorageTek.
Source: Gartner Dataquest (December 2005)


Hitachi/HDS revenue accounted for 10 percent of the industry's revenue. A revenue growth of 19.7 percent ties it with Sun Microsystems for the quarter. "The introduction of two new modular storage products helped to diversify the revenue mix this quarter," Ms. Taylor said.

Network Appliance experienced a slight increase in its market share, however its revenue increased 18.7 percent. Network Appliance's FAS3000 product line has contributed to its steady growth in the industry.

Sun Microsystems realized an increase in market share to 5.4 percent, along with revenue growth of 19.7 percent. Sun's recent acquisition of StorageTek drove much of the gain year-over-year and stemmed the revenue decline from second quarter 2005.

On a regional basis, EMC remains the leading provider of external controller-based disk arrays in North America with 28.3 percent market share; HP leads in Europe, Middle East and Africa (EMEA),and Asia/Pacific with 23.3 percent and 25.4 percent market share respectively; and, Hitachi is the market leader in Japan with 34.1 percent market share.

Additional information on the external controller-based disk storage market is available in the Gartner Dataquest Disk Array Storage Quarterly Statistics Q3-2005.


CONTACT:
Tom McCall
Gartner
(408) 468-8312
tom.mccall@gartner.com


About Gartner:
Gartner, Inc. (NYSE: IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 9,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,900 associates, including more than 1,200 research analysts and consultants, in more than 75 countries worldwide. For more information, visit 
www.gartner.com.



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