EMC, IBM Lead in Midrange Storage
Both are positioned at forefront of fast-growing segment, says B&S Insider report
September 25, 2003
EMC Corp. (NYSE: EMC) and IBM Corp. (NYSE: IBM) are both positioned at the forefront of the fast-growing midrange storage systems market, according to the September report from Byte and Switch Insider.
The "Midrange Storage Systems" report shows that competition in this sector is fierce -- and that alliances are playing a key role in how it's shaking out.
IBM, for example, has parlayed its relationship with LSI Logic Storage Systems Inc. to deliver a comprehensive midtier storage portfolio that "faces off well against market-leader EMC's Clariion line," according to the report. Also contributing to IBM's success are a "peerless global sales force and consulting operation," the report says.
Meanwhile, EMC has raised its stature in the midrange thanks to a reengineering of its Clariion family over the past year as well as through its partnership with Dell Computer Corp. (Nasdaq: DELL). The company has also "overhauled a corporate culture that often rankled storage competitors and IT managers alike," backing off hard-sell tactics and pricing its products competitively, the report says.
The report -- based on interviews with vendors, industry consultants, and customers -- focuses on the seven primary players in the market: Dell, EMC, Hewlett-Packard Co. (NYSE: HPQ), Hitachi Data Systems (HDS), IBM, Network Appliance Inc. (Nasdaq: NTAP), and Sun Microsystems Inc. (Nasdaq: SUNW). In addition to summarizing and comparing the companies' offerings, the report analyzes their strategies and identifies primary areas of concern for each.Overall, the Byte and Switch Insider report finds that even amid slackening IT budgets the midtier storage market has never been stronger. The sector has been spurred by spiraling storage demand and the growing robustness of storage systems engineered for high performance and greater affordability.
Other highlights from the September report, researched by industry analyst Michael Desmond, include:
Prices are dropping for this class of storage, to below $0.03 per Mbyte
The midtier is shifting away from being defined by metrics like capacity and disk count in favor of features and functions
HDS finally righted its midrange offerings after years of neglect but still trails rivals; meanwhile, NetApp and HP are coming on strong with new product offerings
Todd Spangler, US Editor, Byte and Switch
The current Byte and Switch Insider report, "Midrange Storage Systems," is available here
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