Oracle's storage business falters as market slows in Q4, says Gartner

Anemic 1.9 percent year-over-year growth in global storage revenue is due in part to "dour macroeconomics" in North America and in Europe

Oracle suffered the most as growth in the storage market continued to slow during the end of 2012. Hewlett-Packard, Dell and IBM also struggled while EMC emerged as the big winner.

Revenue totaled US$6 billion in the fourth quarter of last year, up 1.9 percent compared with the fourth quarter of 2011, according to Gartner. That's the 13th consecutive growth quarter for the storage market. However, the "anemic year-over-year growth is a reflection of the dour macroeconomics in North America and in Europe, as well as a slowing economy in the Asia and Pacific region," the market research company said in a statement.

Growth has been decelerating in the storage market. Revenue grew 8 percent during the first quarter of 2012, slowed to 6.7 percent during the second quarter and to 3.6 percent during the third quarter compared to the same periods in 2011.

For Oracle it was another tough quarter. Revenue dropped by 23.7 percent, as the vendor struggles to convince users of its long-term commitment to the storage market, according to Gartner.

In addition to Oracle, Dell, HP and IBM also recorded revenue drops and continued to underperform as their new products haven't been able to pick up the slack from the products being replaced, according to Gartner. For example, IBM's IP-based storage products are gaining traction, but sales are not yet strong enough to offset declines in technology sourced from NetApp, Gartner said.

While IBM's revenue only dropped by 0.1 percent, HP's and Dell's revenues dropped by 13.7 percent and 5.7 percent, respectively.

EMC, on the other hand, grew its revenue by 6.7 percent, helped by sales of its VNX, VMAX and Data Domain platforms, as well as by products it acquired when it bought Isilon.

Still, EMC has also been affected by a slowing storage market, and its revenue growth slowed as the year progressed.

NetApp and Hitachi had a good fourth quarter. Aided by a refreshed product portfolio and improving traction for its clustered Data ONTAP operating system, NetApp's revenue grew by 2.8 percent. Hitachi grew its revenue by 2.2 percent, thanks to continued success for the high-end Virtual Storage Platform (VSP).

EMC, IBM and NetApp are the three biggest storage vendors, followed by Hitachi, HP and Dell, according to Gartner's data. EMC is firmly in first place with a 34.2 percent market share that is just 2 percentage points smaller than the shares of IBM, NetApp and Hitachi combined.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags OracleDellIBMstorageemcHewlett-Packardnetapphitachi

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?