Menu
Q4 storage revenue drop at Dell, HP

Q4 storage revenue drop at Dell, HP

Dell and Hewlett-Packard reported declines in storage hardware revenue in the fourth quarter of 2006, running contrary to a growth trend for the storage industry.

HP's external disk storage revenue declined 3.2 percent to US$658 million and Dell's dropped 8.8 percent to $390 million in the fourth quarter, compared to the fourth quarter of 2005, according to data released by IDC this week. The report showed double-digit gains by EMC, up 10 percent to $1.06 billion, and IBM, up 15.5 percent to $892 million.

The overall external disk storage market grew by 6 percent to $4.8 billion in the fourth quarter and 8 percent to $17 billion for all of 2006 compared to 2005. For the year, all of the top five storage vendors, including HP and Dell, posted revenue gains over 2005.

IDC attributes the overall growth to added demand for networked storage at companies with added requirements to save important files. IDC analyst Brad Nisbet notes the increase in network-attached storage, which he says is indicative of ongoing interest in file-related storage.

IBM held 15.1 percent market share based on full-year external disk storage revenue, edging out HP's 14.3 percent share, although IDC calls that a statistical tie because they are within one point of each other. But neither overtook EMC's number-one spot with 21.9 percent share.

HP's CEO, chairman and president Mark Hurd has acknowledged his company's weakness in storage, with revenue growing only 3 percent in HP's fiscal second quarter. Hurd blamed the weak performance on an insufficient sales force and the fact that most of its storage products are tape-based rather than disk-based.

External disk storage refers to storage disks that are in an appliance that is separate from a server in a data centre. The total market includes internal disk storage, including the hard drive in a server, workstation or desktop computer.

EMC also topped competitors on storage software revenue in the fourth quarter and for the year.

EMC, which only sells storage hardware and software, not servers, cornered 27.9 percent of the storage software market in the fourth quarter, followed by Symantec's 18 percent, IBM's 12.1 percent, Network Appliance's 9.6 percent and HP's 5.4 percent.

Total industry storage software sales grew by 3.1 percent in the fourth quarter to $2.6 billion and for the whole year, by 8.3 percent to $9.8 billion compared to the previous year.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags storageIDC

Brand Post

How to become the best IT MSP

This article provides guidance for managed service providers (MSPs) that want to grow their business. It is also useful for any IT service provider looking to move from the break-fix model to managed IT services.

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments