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Storage Market News Has Subtext of Uncertainty

Despite a round of strong-looking financials from key vendors and a slew of startup funding announcements, there are rumblings that all is not well in the storage industry.

At least one analyst, for example, thinks IBMs apparently solid Q1 results last week mask a less-than-positive spending climate.

“Although investors primarily applauded IBM’s report last week, the strength was primarily in software and services, not in hardware,” wrote Caris analyst Shebly Seyrafi, in a report released this morning.

The analyst estimates that IBM’s disk storage business grew six percent year-over-year, but its midrange business grew just 2 percent over the same period and actually fell 30 percent sequentially.

Another vendor experiencing a tough spending climate is Seagate, which saw its revenues decline 14 percent sequentially when it published its Q3 results last week.

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