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IDC: SAN Storage Rocks in Q1

Research firm IDC says the overall storage systems market in the first quarter of 2003 got a lift from strong sales of SAN-attached storage, which grew nearly 14 percent year-over-year in terms of revenue (see IDC: SAN Sales Up 14% in Q1).

And network storage has finally reached the tipping point: IDC says sales of NAS and SAN systems have now overtaken direct-attached storage. "Network storage for the first time represents more than half (53% revenue share) of the total external disk storage systems market, up 5 points from a year ago," said Charlotte Rancourt, research director of IDC's disk storage systems program, in a statement.

Hewlett-Packard Co. (NYSE: HPQ) retained its overall market lead in the quarter, despite a 6.7 percent year-over-year drop in revenue, according to IDC (see IDC: HP Leads Storage Market in Q1 and IDC: HP Still Top Dog).

Roger Archibald, VP of infrastructure and NAS in HP's Network Storage Solutions group, acknowledges that the company's first-quarter storage sales were down, compared with the combined sales of HP and Compaq Computer a year ago, but he points to the fact that HP has managed to keep the lead spot in the market despite declining sales. "Everyone hopes we've seen the turnaround now in the economy," he says.

And though EMC Corp. (NYSE: EMC) remained the No. 1 network storage vendor, with 26.3 percent share of the combined SAN and NAS market in the first quarter, it too saw a decline in year-over-year revenues -- dipping 9.8 percent, IDC says.

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