Gartner says worldwide external controller-based (ECB) disk storage vendor revenue totaled US$5.3B in Q3 2012, a 3.6% increase from revenue of US$5.1B in Q3 2011. Q3 2012 was the 12th consecutive quarter of year-over-year revenue growth.
"Reflecting the weak global macro economy, revenue growth in Q3 2012 was the lowest annual growth rate over the past seven quarters, down 3.1 percentage points and 4.4 percentage points respectively from Q2 2012 and first quarter 2012 growth rates," said Roger Cox, research vice president at Gartner.
While not as robust as in the past, the network-attached storage (NAS) segment grew 10.9%. The block-access segment composed of storage area network (SAN) and direct-attached storage (DAS) increased only 1.6% in Q3 2012. The block-access SAN/DAS market segment represented 76.2% of the total ECB disk storage market in Q3 2012. The NAS segment gained 1.5 points of share to represent 23.1% of the total ECB disk storage market in Q3 2012.
Four vendors – Hitachi/Hitachi Data Systems, Fujitsu, EMC and NetApp – outgrew the market in the third quarter of 2012 (see Table 1). Hitachi/HDS' high-end VSP offering exhibited particular strength, while its midrange platforms achieved positive year-over-year growth for the first time in 2012. Fujitsu continued to emphasize its high-end and midrange Eternus brand storage platforms, gaining share in Europe, as well as in Japan. Even in a down market, EMC's broad ECB disk storage portfolio enabled it to realize the greatest year-over-year market share gain. Recovering from a poor performance in the second quarter of 2012, NetApp showed signs of regaining its footing as market traction for its Cluster-Mode Data ONTAP and FlexPod offerings increased.
Note 1: EMC revenue excludes OEM revenue from Dell and Fujitsu Technology Solutions.
Note 2: Hitachi/Hitachi Data Systems revenue excludes OEM revenue from HP.
Note 3: NetApp revenue excludes ONTAP OEM revenue from IBM and Engenio OEM revenue.
Note 4: Fujitsu's branded revenue does not include products sold under the EMC and NetApp brands.
Source: Gartner (December 2012)
Dell, HP, IBM and Oracle face difficulties beyond global macroeconomic issues. Lack of significant presence in the high-growth NAS market segment, in conjunction with the abrupt Compellent Storage Center and EqualLogic PS Series revenue shortfall, the latter apparently due to changing go-to-market strategies resulting from executive leadership changes, contributed to Dell's Q3 2012 annual revenue drop-off.
Beyond the turmoil surrounding HP's board of directors and associated corporate activities, HP faces additional headwinds. Over 43% of its ECB disk storage revenue comes from the weakest region: EMEA. In spite of the impressive 72% year-over-year increase in 3PAR StoreServ revenue, it alone is unable to offset the drag of legacy P9000 XP, P6000 EVA, P4000 SAN and P2000 MSA products, which collectively deteriorated 24.5% in Q3 of 2012 compared with Q3 of 2011.
Considering the breadth and competiveness of its ECB disk storage portfolio, IBM's Q3 2012 annual revenue decline is attributed in part to faulty field operation strategy and execution, as well as to the fall off in DS8000 series which is closely aligned with System z and Power System server sales, and midrange DS5000/3000 and N series revenue.
Despite continued R&D investment by Oracle in its discrete ZFS Storage Appliance and Pillar Axiom storage platforms, users remain skeptical of Oracle's long-range commitment to its ECB disk storage business.
Rebounding from the March 2011 tsunami disaster, vendor revenue in Japan increased 11.2%, followed by North America, Asia/Pacific and Latin America with only 5.7, 4.8, and 1% year-over-year growth in Q3 2012, respectively.