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Despite Recession, External Disk Storage Sales Grew 8.8%

Despite the slumping economy and a slowdown in tech spending, the storage market is holding up well, according to IDC . The research firm reported today 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.

Highlighting the ongoing need that most businesses have for more storage as well as the decline in prices for storage, the firm said total disk systems capacity shipped in the quarter reached 2,170 Pbytes, up 41.7 percent from a year ago, which is substantially higher than the revenue increase.

"Numerous IDC surveys of IT users suggest that storage is one of a few hardware categories where buyers are reluctant to cut spending independent of the economic situation," said Natalya Yezhkova, research manager of storage systems research at IDC, in a statement. "At the same time, current market conditions and tightening budgets are leading to longer purchasing cycles for storage systems and to the adoption of technologies designed to optimize storage utilization and/or reduce total cost of ownership."

EMC Corp. (NYSE: EMC) remains the leader in external disk storage systems, increasing its share of revenue from 21.6 percent in the third quarter of 2007 to 23 percent this year. EMC's revenue for the quarter was $1.12 billion, an increase of 16.2 percent.

IDC reported that the next three storage vendors for the quarter were IBM Corp. (NYSE: IBM), with a 12.7 percent market share and $616 million in revenue; Hewlett-Packard Co. (NYSE: HPQ) with 12.5 percent share and $608 million in revenue; and Dell Inc. (Nasdaq: DELL), with 9.1 percent share and $444 million in revenue. NetApp Inc. (Nasdaq: NTAP) (8.2 percent share, $398 million revenue) and Hitachi Ltd. (NYSE: HIT; Paris: PHA) (8.0 percent and $389 million) were in a statistical dead heat for fifth place, IDC said.

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