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Second quarter sees rise in storage revenue

Latest figures from the Gartner have showed that storage spending is up.

Worldwide external controller-based disc storage revenue totalled $3.2bn (£1.8bn) in the second quarter, up 5.1% from the $3.1bn recorded in the same period last year.

The figures also confirm that Hewlett-Packard (HP) had problems in its storage group during the quarter.

While most other suppliers saw their revenue increase, HP's revenue declined 8.5% to $532.5m in the quarter from $582m in 2003's second quarter. According to the report, HP was forced to cut prices on its EVA and MSA products in the second quarter because it was late to market with low-cost, high-capacity disc drives.

Hitachi Data Systems also saw sales decline 15.8% to $223.2m from $265m the previous year.

Hitachi will announce a refresh to most of its line and it said the selling off old product in anticipation of the new line was to blame for the decline. 

Sun Microsystems' storage revenue also fell, dropping to $260.2m, down from $275m the previous year. However, the report noted that Sun's revenue was the first quarter-to-quarter revenue increase in four quarters, adding a bright note to Sun's storage fortunes.

Topping the list in Gartner's survey was EMC, which had revenue of $745.6m in the quarter, an increase 17.4% over 2003's $635m.

While HP held onto second place in the rankings, third-place IBM grew closer with its $427.6m in sales, a 6.6% increase over 2003's $401m.

Dell, Network Appliance and Storage Technology (StorageTek) all showed healthy increases during the quarter.

Dell's revenue grew 27.8% to $195.6m, up from $153m in 2003, demonstrating that its strategic partnership with EMC was paying off. Network Appliance showed strength in its new line of products with revenue growth of 28.1%. Network Appliance had sales of $184.5m, up from last year's $144m. StorageTek recorded sales of $42.9m, a 26.2% increase over 2003's $34m.

The large "other" category also increased, jumping 5.8% to $620.8m in revenues, up from $587m in 2003.

Bob Francis writes for Infoworld


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