Storage hardware sales hit by lower government spending

NetApp was the big winner as other vendors suffered from revenue declines

Storage vendors struggled with a decline in spending by the U.S. government and increased investment in public cloud capacity during the third quarter, according to IDC.

Worldwide disk storage systems market sales decreased by 5.6 percent to US$7.4 billion during the quarter, the analyst firm said on Thursday.

The market was also negatively affected by an increased use of storage efficiency technologies and general price pressures, according to IDC. One saving grace for the storage vendors was strong demand for offerings targeted at heavily virtualized environments, IDC said.

The five largest disk storage vendors were EMC, Hewlett-Packard, IBM, Dell and NetApp. NetApp was the only one that increased revenue during the third quarter compared to the same period last year, up 5.9 percent to $748 million.

HP and IBM were hit hardest: their respective sales dropped by 10.2 percent and 11.2 percent to $1.27 billion and $958 million, respectively, according to IDC. EMC's revenue dropped by 1.3 percent to $1.76 billion.

Storage wasn't the only hardware segment that struggled during the third quarter. Earlier this week IDC said that server sales dropped by 3.7 percent during the three-month period. Demand for Linux and IBM's System z mainframes increased but sales of Windows servers were down slightly and Unix server revenue dropped by 31.3 percent.

Not every enterprise hardware segment was down during the third quarter, however, as the growing popularity of 10 Gigabit and 40 Gigabit Ethernet in data centers helped boost revenue for the entire Ethernet switch market by 6.5 percent, IDC said. Enterprises also continued to invest in Wi-Fi equipment to support bring-your-own-device programs.

Send news tips and comments to mikael_ricknas@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags DellIDCIBMstoragenetappHewlett-Packardemc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?