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External disk sales hammered in Q1

Steve Bell

External disk storage sales have plummeted 5.2% year-on-year to $5.6bn during the first quarter of 2014, representing a decline not seen since 2009, reported analyst house IDC.

Total sales, both internal and external disc storage, for the same period fell by 6.9% signalling a sequential decline of 17% compared to the fourth quarter in 2013. That said, sales totaled $7.3bn and Q4 sales tend to be much higher due to seasonal sales.

Eric Shephard, research director, IDC Storage attributed the decline to a 25% drop in high-end storage spending. However, other factors included mainstream adoption of storage optimization technologies, a trend towards keeping systems longer, economic uncertainty, and a move to the cloud to address micro and short-term storage needs.

EMC notched up the largest sales but also experienced a year-over-year share loss during the quarter. It captured 29.1% of the external disk storage revenue during the quarter, down from 30.2% for the same period the previous year.

NetApp came in second with 15.1% share of external revenue, up from 14.8% for the first quarter in 2013. HP, IBM, and Hitachi finished the quarter with shares of 8.8%, 8.8% and 8.7% respectively. Dell was the sixth largest supplier of external storage, generating 7.3% of the revenue during the quarter.


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