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Economic Downturn Hits Storage Spending: Page 3 of 3

TIP said a typical comment from an IT procurement manager at a financial company highlights the reasons for an upcoming decline in storage spending: "Risk and need for storage have not gone away, and volumes are increasing, so the appetite for storage is still high -- but we have no dollars to spend."

Other research has indicated that storage has been one of the stronger technology sectors this year. Research firm IDC earlier this month reported that the worldwide storage software market had revenues of $3.1 billion in the third quarter, an increase of 11.6 percent from the same quarter a year ago. It was the 20th consecutive quarter of year-over-year growth for storage software, the firm said. It also reported that that factory revenues for worldwide external disk storage systems increased 8.8 percent year-over-year to hit $4.9 billion in the third quarter. The overall market for disk storage systems grew 1.1 percent to $6.6 billion, IDC said.Male noted that the IDC numbers came from vendors that were reporting factory revenues, while the TIP numbers came from interviews with IT executives buying products: "Apples and oranges. They are not comparable," he said.