Worldwide external disk storage systems factory revenues grew $272 million in the fourth quarter of 2006 (4Q06), posting 6.0% growth from a year ago to $4.8 billion, according to IDC Worldwide Disk Storage Systems Quarterly Tracker. For the quarter, the total disk storage systems market grew to $6.9 billion up 4.9% from the prior year's fourth quarter. Total disk storage systems capacity shipped reach 1,030 petabytes, growing 48.5%.
"The adoption of networked storage continues to fuel the market," said Brad Nisbet, program manager with IDC's Storage Systems Program. "In particular, we saw strong results for NAS which is indicative of ongoing interest in file-related storage. In addition, iSCSI continues to emerge as an alternative connection type for many customers as they look to simplify the environment for less mission-critical applications."
Total External Disk Storage Systems
For the fourth quarter, EMC maintained its lead in the external disk storage systems market with 22.1% revenue share, followed by IBM and HP with 18.6% and 13.7% revenue share, respectively. Dell and Hitachi rounded out the top 5 with 8.1% and 7.3%, respectively. Among the top 5 suppliers, IBM and EMC posted the strongest year-over-year revenue growth during 4Q06, with 15.5% and 10.0% growth, respectively.
Network Disk Storage Systems
The total network disk storage market (NAS Combined with Open SAN) posted 12.7% year-over-year growth in the fourth quarter to more than $3.3 billion. EMC continues to maintain its leadership in the total network storage market with 28.7% revenue share, followed by IBM and HP with 16.6% and 13.3% revenue share, respectively.
In the Open SAN market, which grew 10.5% year over year, EMC lead with 25.3% revenue share, followed by IBM with 18.9%. The NAS market grew 21.9% year over year, led by EMC with 41.2% revenue share and followed by Network Appliance with 24.3% share. The iSCSI SAN market continues to show strong momentum, posting 78.9% revenue growth compared to the prior year's quarter. Network Appliance continues to lead the market with 23.0% share, followed by EMC with 18.2% share.
"The market for network storage systems priced between $15,000 and $149,999 remained a sweet spot for vendors in 2006,” said Natalya Yezhkova, research manager with IDC’s Storage Systems Program. “These products grew at a double-digit rate and, for the first time, outsold the higher-priced segment (systems priced $150,000 and over) during all four quarters. Several factors contributed to this dynamic, including the increased adoption of network storage by mid-sized businesses and the growing demand for less expensive, capacity-oriented storage aimed at more non-transactional applications such as digital content, email archives and replicated data."