Recession takes its toll on the storage market


Recession takes its toll on the storage market

Paul Kunert

The EMEA external disc storage market suffered in the first quarter of 2009, dented by the recession and volatile currency markets.

According to data released by market watcher IDC today, revenues across the region fell 19.1% year-on-year to $1.36bn.

"It's tough out there," said Eric Sheppard, programme director for European storage research. "There is a currency headwind, price erosion and lower demand."

Large projects were shelved to the benefit of lower cost iSCSIs which grew 107% to $95m, but all other installation environments including Nas, Fibre Channel Sans and external Das experienced double-digit declines.

External arrays under $15,000 was the major price band that grew, climbing 27.6% to $244m, as segments above this saw significant falls forcing down average sales prices by 25% to 30%.

"Companies are spending money but clearly they are shifting to lower-cost arrays, they have put the brakes on big projects," said Sheppard.

Out of the five major vendors within EMEA, fourth placed Dell - including EqualLogic - fared the best, with a 2.8% decline in revenues to $137.9m.

Holding on the highest market share of 23%, EMC saw a 14.5% dip in revenues to $294m, while the value of HP sales fell 27% to $198.2m, IBM dropped 26.7% to $160.4m and NetApp went down 15.4% to $105m.

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