Market data


Storage software*
Vendor   Revs   Share   Growth  
EMC $563m 32% 26%
Veritas $389m 22% 21%
CA $174m 10% 11%
IBM $148m 8% 9%
HP $141m 8% 28%
Other $364m 21% 6%
Total $1,778m 100% 18%
* IDC 4Q03

There can be few industries with the kind of dynamics that are currently rocking the storage sector.

The cost of storing data (as measured in $/MB) continues to plummet by as much as 50% a year, according to IDC. Counter-intuitively, the price of storage systems continues to rise, and the cost of running storage – the people costs, the administration costs, the software and so on – is soaring.

There are good reasons for that. The amount of digital data people are creating and want to store is rising at between 50% and 70% a year. At the same time, organisations are under pressure to retain larger quantities of data for longer periods, and to organisation the storage of that data so it is accessible for regulatory checks and to support sound corporate governance.

The upshot is an industry that is in rude health. The worldwide storage products and services market should


Fibre channel switches*
Vendor   Revs   Share   Growth  
Brocade $466m 34% 10%
Emulex $279m 19% 23%
McData $250m 17% 7%
QLogic $225m 15% 24%
HP $59m 4%
Other $162m 11% -51%
Total $1,470m 100% 3%
* Gartner 2003

generate revenues of $75.6 billion in 2004, up 23% since 2002.

On the product side, by far the largest chunk of that (37%) comes from sales of disk systems. In 2004, spending on disk systems is expected to rise 11% to $27.8 billion, says IDC. But the spend will be by no means evenly spread over the three main classes of products – direct attached storage (DAS), network attached storage (NAS) and storage area networks (SAN). In terms of hardware alone, spending on SAN products will equal that of DAS in 2004, and overtake it in 2005 as DAS loses its place as the mainstay of corporate storage.

NAS systems will not be left out of the picture. By 2005, almost $6 billion will be spent annually on NAS products, compared to around $9 billion on DAS. Look back four years and the ratio was $2 billion to $17 billion.


Worldwide disk storage revenue
SourceL IDC, Horison Information Strategies


Storage industry revenue
Source: IDC, Horison Information Strategies


Storage networking projections
Source: IDC, Horison Information Strategies


Disk storage systems*
Vendor   Revs   Share   Growth  
HP $809m 22% 21%
EMC $745m 20% 20%
IBM $625m 17% 18%
Hitachi $277m 7% 14%
Dell $240m 6% 50%
Sun $217m 6% -6%
Other $807m 22% -12%
Total $3,720m 100% 8%
* External disk systems IDC 4Q03

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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