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IDC: SANs Gather Steam: Page 3 of 4

David Goulden, EMC's executive vice president for global marketing and new business development, agreed: “It’s clear that EMC and Dell are the fastest-growing players in the disk storage systems market, and this demonstrates what happens when the best technology is delivered to customers by the best sales and distribution forces in the industry."

HP led the open SAN category with a 31.2 percent of market revenue after growing 18 percent over last year (see HP Midrange Storage Impresses). EMC had 27.1 percent of the SAN market, and IBM was third with 14.5 percent of the market after growing 37.2 percent.

IBM sees EMC as its chief enemy, and it's bent on overcoming it (see IBM Attacks EMC Customer Base). “We are getting our boxes into EMC shops and have established a stronghold in the high-end space," says Roland Hagan, IBM’s VP of storage systems. Still, IDC's numbers indicate IBM is taking more revenue from players smaller than EMC. IDC shows “other suppliers” -- all except HP, EMC, IBM, Hitachi, Dell, Sun, and NetApp -- dropped 28.8 percent in the Open SAN space. HP, EMC, and IBM controlled 72.8 percent of that market, up from 68.7 percent last year.

In the NAS market, NetApp ruled in 2003, even though EMC gained on it. NetApp took $236 million in NAS revenues, a 37 percent market share, compared with EMC's $130 million, a market share of 35.4 percent. Still, EMC grew its share 17.2 percent year over year, while NetApp fell 0.4 percent.

Indeed, 2003 wasn't a good year for NAS. EMC, Hitachi, and HP grew from last year in the NAS market, with the rest of the market slipping considerably. HP grew 21.8 percent, from $15 million to $19 million, in NAS revenues. Hitachi nearly doubled its NAS sales, hitting $6 million for 1.5 percent of the market -- growth of 94 percent. Hitachi didn’t do as well in open SANs, slipping 3.3 percent from last year.