Weak Server Sales Knock Data Storage Revenues Down 6%

Mar 6, 2009
2 minute read
eWeek content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

The worldwide recession, which has been crunching other sectors of IT for months, is finally beginning to crack into the data storage market.

Research company IDC revealed in its quarterly disk storage systems report March 6 that total disk storage systems market revenues declined 5.9 percent from 2008, totaling $7.3 billion. Weakness in server systems sales-not in storage arrays-was the main culprit, IDC said.

Despite the sales downturn, storage capacity shipped continues to grow at a substantial pace. IDC said total disk storage systems capacity shipped reached 2,460 petabytes, an increase of 27.3 percent over a year ago.
IDC also reported that worldwide external disk factory revenues posted a year-over-year decline of .5 percent, with revenues totaling $5.3 billion in the fourth quarter of 2008.
It was the first time in five years that IDC reported negative-growth numbers in either of those world storage markets.
In the total worldwide disk storage systems market, Hewlett-Packard led with 19.7 percent while IBM and EMC ended in a statistical tie for the second position, with 18.0 percent and 17.1 percent market share, respectively. EMC maintained its lead in the external disk storage systems market with 23.3 percent revenue share, followed by IBM with 15.7 percent and HP with 13.0 percent revenue share.

Dell ended the quarter in fourth place with 9.3 percent share. Hitachi and NetApp finished the quarter in a statistical tie for fifth with 7.8 percent and 7.0 percent, respectively.
Among the top five suppliers, Dell and HP posted the strongest year-over-year revenue growth during the fourth quarter of 2008, with 10.0 percent and 5.8 percent growth, respectively.
“Because of the global economic crisis, the last quarter of 2008 was tough for the disk storage systems market, resulting in a market decline from the same quarter last year,” said IDC Storage Systems research manager Natalya Yezhkova.

“The negative impact, however, varied among market segments. For instance, high-end storage was impacted negatively by a freeze in end-user spending and longer purchasing cycles; but some low-end and midrange storage segments actually increased as end users broadened their search for storage solutions in these lower-cost segments to satisfy their increasing storage needs while optimizing investments in storage infrastructure,” Yezhkova said.

Chris Preimesberger

Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.