Gartner Says Worldwide External Controller-Based Disk Storage Market Grew Five Percent in Fourth Quarter of 2013
Source: View: 274 Date: 2014-03-18

Worldwide external controller-based (ECB) disk storage vendor revenue totaled $6.3 billion in the fourth quarter of 2013, a five percent increase from revenue of $6.0 billion in the fourth quarter of 2012, according to Gartner, Inc.

"Following an abysmal third quarter, the fourth quarter of 2013 returned to growth. Driven by pent-up demand and the year-end budget flush phenomenon, the market overcame a fragile global economy and grew a strong five percent over the same period in 2012" said Roger Cox, research vice president at Gartner.

While Fujitsu and NetApp had year over year revenue gains, only two vendors - EMC and HP - beat the year-over-year market growth rate in the fourth quarter (see Table 1). Propelled by broad acceptance of the HP 3PAR StoreServ and the StoreOnce disk-based backup platforms, HP led all surveyed vendors in year-over-year revenue growth. Beyond its broad ECB disk storage portfolio, EMC benefited from the success of its VNX and Data Domain product refresh offerings. The increasing traction of NetApp’s Clustered Data ONTAP operating system within its installed base, as well as an alternative to competing solutions, is enabling NetApp to achieve above-market results. Fujitsu continues to make gains in the EMEA region and has a strong showing in its home country, Japan.

Dell, IBM and Oracle continue to underperform the market and lose share. Although the Dell Compellent offering is producing year-over-year revenue increases, these gains are insufficient to offset the decline in other members of its ECB disk storage portfolio. In addition, Dell may be suffering from organizational and structural issues associated with its leveraged buyout that are hampering sales. IBM’s strategy of emphasizing its IP-based disk storage products is gaining traction but is not yet strong enough to offset declines in technology sourced from NetApp. Even though Oracle’s ZFS Storage Appliance is a competitive offering from a technology perspective, Oracle’s declining revenue results are due to inadequate market coverage.

For the year, worldwide disk storage vendor revenue totaled $22.5 billion in 2013, a 1.4 percent increase from revenue of $22.2 billion in 2012 (see Table 2). This anemic year-over-year growth, the lowest since the decline in 2009, reflects the influence of muddled global macroeconomies, particularly in North America, Asia/Pacific and EMEA. The culmination of the infrastructure build-out after the 2011 tsunami with the weakness of the yen contributed to Japan being the only region to experience an absolute year-over-year decline in vendor revenue. Although pricing per terabyte continues to decline as expected, the average selling price (ASP) per unit increased 5.1 percent in 2013, signaling larger configurations.

Gartner ECB disk storage reports reflect vendor-branded hardware-only revenue, as well as hardware revenue associated with financial leases and managed services. Revenue from optional and separately priced storage software and storage area network infrastructure components is excluded.

Additional information on the ECB disk storage market is available in the Gartner report "Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 4Q13 Update." The report includes vendor market share by data access method, price band, sales channel and operating system segmentation. The report is available on Gartner’s website at

• Janessa Rivera
• Gartner

• Rob van der Meulen
• Gartner

About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner in over 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,800 associates, including 1,450 research analysts and consultants, and clients in 85 countries. For more information,

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