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Storage: Strong Demand Drives Record Sales and Record Capacities

By Dick Weisinger

Disk Storage systems generated $8.5 billion in revenue in the fourth quarter of 2011, a 3.5 percent increase over 2010’s fourth quarter results, according to research company IDC.  The actual storage systems capacity shipped though jumped a healthy 22.4 percent from 2010, totalling 6279 petabytes.  That’s the biggest sales record in a quarter for storage on record.  For all of 2011, global storage factory revenues reached $23.5 billion, a 10.6 percent increase over all of 2010.
 
The top-ranking storage hardware suppliers are EMC, IBM and Netapp with 29.4, 15.2, and 11.2 percent of the market.
The top-ranking storage software suppliers are EMC, IBM and Symantec with 25.7, 19.8, and 15.4 percent of the market, respectively.
 
Liz Conner, senior research analyst, Storage Systems at IDC, said that “The external disk storage systems market ended 2011 with strong year-over-year revenue growth that helped to push the market to 10.6% growth for the entire year.  Helping to drive the overall market growth were the emerging regions, which posted high, sustained growth in 2011. In contrast, the mature regions saw growth soften as their economies entered the recession recovery phase. Another factor underlying the 2011 growth, and specifically the fourth quarter gain, was the delayed impact of the drive shortage caused by the Thailand floods. The enterprise storage market is expected to start feeling the brunt of this shortage in 2012, resulting in minimal impact on the fourth quarter and 2011 as a whole.”
 
Eric Sheppard, research director for storage software at IDC, said that “Despite being a mature market, Data Protection & Recovery sales benefited greatly by the challenges introduced by virtualization and the requirement to guarantee high standards of recovery point objective (RPO) and recovery time objective (RTO) within these environments.”
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