Storage hardware sales hit by lower government spending

NetApp was the big winner as other vendors suffered from revenue declines

Storage vendors struggled with a decline in spending by the U.S. government and increased investment in public cloud capacity during the third quarter, according to IDC.

Worldwide disk storage systems market sales decreased by 5.6 percent to US$7.4 billion during the quarter, the analyst firm said on Thursday.

The market was also negatively affected by an increased use of storage efficiency technologies and general price pressures, according to IDC. One saving grace for the storage vendors was strong demand for offerings targeted at heavily virtualized environments, IDC said.

The five largest disk storage vendors were EMC, Hewlett-Packard, IBM, Dell and NetApp. NetApp was the only one that increased revenue during the third quarter compared to the same period last year, up 5.9 percent to $748 million.

HP and IBM were hit hardest: their respective sales dropped by 10.2 percent and 11.2 percent to $1.27 billion and $958 million, respectively, according to IDC. EMC's revenue dropped by 1.3 percent to $1.76 billion.

Storage wasn't the only hardware segment that struggled during the third quarter. Earlier this week IDC said that server sales dropped by 3.7 percent during the three-month period. Demand for Linux and IBM's System z mainframes increased but sales of Windows servers were down slightly and Unix server revenue dropped by 31.3 percent.

Not every enterprise hardware segment was down during the third quarter, however, as the growing popularity of 10 Gigabit and 40 Gigabit Ethernet in data centers helped boost revenue for the entire Ethernet switch market by 6.5 percent, IDC said. Enterprises also continued to invest in Wi-Fi equipment to support bring-your-own-device programs.

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 DellIBMstorageemcIDCHewlett-Packardnetapp

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

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Ada Chan

Dynabook Portégé X30L-G

I highly recommend the Dynabook Portégé® X30L-G notebook for everyday business use, it is a benchmark setting notebook of its generation in the lightweight category.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?