Global High End Storage Sales Slammed Hard By Recession

It seems that the ongoing credit crunch is taking its toll over the much lucrative external disc storage domains too, with revenues for the fourth-quarter for the worldwide storage software market have plunged by 5.9 percent as against the same period for a year ago, according to a recent report from the research company IDC.

The research company further asserted that the disk storage market has shrunk for the first time in a period of over five years with the year-over-year revenues for the market have declined by around 0.5 percent.

For the quarter, the total disk systems factory revenues plummeted to $5.3 billion revenues, while the total disk storage systems market revenues plunged to $7.3 billion, the report said.

The research firm attributed the decline to sub par server systems sales, with the cumulative disk storage systems capacity standing at around 2,460 petabytes and managed to register a growth of 27.3 percent only on year-on-year basis.

The report pointed out that IBM has badly been affected by the scenario, with the company posted 22.7 percent drop in total disk storage systems factory revenues for the final quarter as compared to the same period last year.

Quoting the impact of the global downturn on disk storage systems market, Michael Margossian, research analyst of storage software at IDC, said in a statement, “Even with the usually strong fourth quarter, most vendors showed signs of slowing down, and in some cases declining year over year”.

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Our Comments

The slowdown was expected and is something that hit all technology sectors. IBM has been one of the big losers as companies scale down their expenses or choose to buy cheaper alternatives. Meanwhile we'd be interested to find the breakdown of hard disk drives sold worldwide. We suspect 500GB hard disk drives to be the sweet spot.

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