IBM, HP, EMC Go 1-2-3 in World Storage Services Market, Gartner Reports

By Chris Preimesberger  |  Posted 2006-07-17 Print this article Print

With more than $5 billion in revenue, Big Blue owns 21 percent of the world market; no other competitors are in double digits.

IBM, Hewlett-Packard, and EMC went 1-2-3 in 2005 as the most successful individual companies in worldwide storage services market share, according to a report released July 5 by Gartner Dataquest analyst Adam W. Couture to clients and made public July 17. Big Blue, EMC, and Sun Microsystems ranked 1-2-3 in the regional "Americas" ranking, with HP fourth.
IBM, of Armonk, N.Y., reported $5.175 billion in worldwide storage services revenue in 2005 for a 21.1 percent market share, followed by HP, of Palo Alto, Calif., with $1.68 billion (6.8 percent), and EMC, of Hopkinton, Mass., with $1.55 billion (6.4 percent).
Gartner Dataquest, in Framingham, Mass., defines storage services as hardware maintenance and support services, software maintenance and support services, and storage consulting services. It does not include revenue associated with product-license updates and upgrades. However, the report does include entitlements to maintenance in the planning of research agendas and publications for software support services, Gartner said. By far the largest worldwide market share—52.6 percent—belongs to the "others" category, Gartner said. This takes into account storage service revenue generated by smaller storage hardware and software vendors, outsourcers, managed-hosting providers, MSPs (management service providers), consulting companies, systems and network integrators, distributors, resellers, and third-party hardware and software support providers. The 2005 worldwide top 10, according to Gartner:
    1. IBM, $5.175 billion (21.1 percent) 2. HP, $1.68 billion (6.8 percent) 3. EMC, $1.55 billion (6.4 percent) 4. Sun StorageTek, $1.4 billion (5.7 percent) 5. Dell, $622 million (2.3 percent) 6. Unisys, $531 million (2.0 percent) 7. HDS, $431 million (1.8 percent) 8. Symantec, $424 million (1.7 percent) 9. NetApp, $226 million (1.0 percent) 10. McData, $143 million (0.6 percent)
The "Americas" regional top 10, as charted by Gartner:
    1. IBM, $2.03 billion 2. EMC, $948 million 3. Sun StorageTek, $762 million 4. HP, $599 million 5. Dell, $379 million 6. Symantec, $267 million 7. Unisys, $264 million 8. HDS, $211 million 9. NetApp, $131 million 10. McData, $97 million
Storage services in general are becoming more important to the IT industry as a revenue generator and as a way of maintaining account control for hardware vendors, according to the report. Click here to read more about the disk storage market. IBM was first across the board, including Europe/Middle East/Africa (EMEA), with $1.8 billion in sales, and in Asia/Pacific/Japan, with $1.3 billion. HP placed second in both EMEA ($769 million) and in Asia/Pacific/Japan ($313 million). Sun was third in EMEA ($480 million) and Asia/Pacific/Japan ($158 million). Sun Microsystems, of Santa Clara, Calif., moved into the top four due to the purchase of Denver, Colo.-based StorageTek in February 2005 for $4.1 billion. Virtually all of its market share is due to that acquisition. Check out eWEEK.coms for the latest news, reviews and analysis on enterprise and small business storage hardware and software.
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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