ECB disk storage revenues surge 6.7% in the second quarter, says Gartner

EMC, Fujitsu and Oracle beat industry average for revenue gains

The worldwide external controller-based (ECB) disk storage vendor revenue jumped 6.7 percent year-over-year in the second quarter of 2012, reaching $5.5 billion, according to the latest research by Gartner.

While this is the eleventh consecutive quarter of revenue growth, the increase fell short of Gartner's prediction of a 7.9 percent year-over-year jump. Gartner Research Vice President Roger Cox attributed the slower than expected growth to poor economic performance in Europe, the Middle East and Africa (EMEA) and the Asia/Pacific regions. By contrast, the North American and Japanese markets exceeded Gartner's expectations.

Three ECB disk storage vendors--EMC (NYSE: EMC), Fujitsu (OTC: FJTSY) and Oracle (NASDAQ: ORCL)--generated revenue gains higher than the industry average. Gartner noted that EMC used its "optimized-to-fit" product strategy to increase its market share to 33.3 percent, more than twice the market share of second place IBM.

Fujitsu benefited from a rebound in Japan and success in EMEA where its Fujitsu Technology Solutions subsidiary posted improvements resulting from sales of its Fujitsu Eternus-branded storage products. Oracle increased its year-over-year market share for the first time since it closed the acquisition of Sun Microsystems in early 2010, primarily as a result of beefed up sales of its ZFS Storage Appliance, according to Gartner.

Dell (NASDAQ: DELL), HP (NYSE: HPQ) and Hitachi (OTC: HTHIY) had positive year-over-year revenue increases, but below the industry average of 6.7 percent, Gartner noted. Dell showed revenue growth in its Compellent and EqualLogic storage platforms; HP capitalized on its increased P10000 3PAR Storage System traction to offset declining EVA sales; and Hitachi relied on its high-end enterprise VSP to enable it to produce positive year-over-year revenue gains.

IBM (NYSE: IBM) and NetApp (NASDAQ: NTAP) were the only vendors that did not post year-over-year revenue gains in the second quarter. IBM was not able to offset the deterioration in its DS8000 and DS5000/DS3000 revenue despite a 28.2 percent increase from its XIV and Storwize V7000 ECB disk storage platforms. NetApp's FAS6000 and FAS3000 product families had disappointing revenues; only the FAS2000 series had a positive year-over-year revenue growth in the second quarter.

Gartner said its ECB disk storage reports reflect revenue from new vendor-branded hardware only and hardware revenue generated by financial leases and managed services. The firm excluded optional and separately priced storage software revenue, storage area network infrastructure components and used ECB disk storage systems.

For more:
- read Gartner's press release

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