Dell, IBM, HP Losing Ground in Storage Wars

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For the final three months of 2012, worldwide ECB market revenue grew 1.9 percent to $6 billion annually – a figure described by analysts as "anemic" and a reflection of the "dour macroeconomics" in Europe and North America.

Editor’s note:  As part of our special editorial partnership, Channelnomics is publishing this recent article from CRN in the UK.

Dell Inc., IBM Corp. and Hewlett-Packard Co. have all "continued to underperform" in the worldwide external controller-based (ECB) disk storage market, according to Gartner Inc., despite the market experiencing its 13th consecutive quarter of sequential revenue growth.

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For the final three months of 2012, worldwide ECB market revenue grew 1.9 percent to $6 billion annually – a figure described by the analysts as "anemic" and a reflection of the "dour macroeconomics" in Europe and North America.

Dell's Q4 revenue slumped 5.7 percent year on year to $393 million, taking its market share down from seven percent to 6.5 percent for the same period.

HP's quarterly revenue dropped 13.7 percent annually to $479 million, meaning its share of the market for Q4 fell from 9.4 to 7.9 percent, when compared with 2011.

IBM's sales for the quarter dipped by 0.1 percent to $977 million, leading its market share to slip from 16.5 to 16.2 percent, also for the fourth quarter.

Gartner put the trio's woes down to their inability to sell enough new products to cover the drop in sales of the older technologies they are replacing.

It further cited organizational and structural issues as reasons for a sales slump at Dell, while it reckons HP struggled to balance the decline in what it classifies as "traditional storage" with its growing converged go-to-market model.

EMC Corp., Hitachi Data Systems and NetApp Inc. beat the year-on-year market growth rate in Q4, according to Gartner, which put EMC's 6.7 percent annual revenue growth down to its VNX, VMAX and Data Domain platforms' success.

The analyst claimed HDS' 2.2 percent annual revenue growth to $570 million for Q4 was down to its strong VSP offering, while improving traction in NetApp's Data Ontap product led to 2.8 annual revenue growth, taking its sales figure for the quarter to $637 million.

For the full year, the worldwide ECB market revenue totaled $22.3 billion, a 4.9 percent year-on-year rise, according to Gartner's Quarterly Statistics: Disk Array Storage, All Regions, All Countries, 4Q12 Update.

For more UK channel coverage from CRN, visit www.channelweb.co.uk

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