EMC Leads In Storage MarketZacks Investmentupdated Sep 13, 2010TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity. EMC Corp. (EMC) gained market share in the external storage market during the second quarter ended June. According to technology research firm IDC, EMC is leader in the external storage market. According to IDC, EMC’s market share improved to 25.7% in the reported quarter from 22.0% in the year-ago period, outperforming its major competitors such as International Business Machines Corp. (IBM), Hewlett-Packard Co. (HPQ) and NetApp Inc. (NTAP). EMC posted revenues of approximately $1.3 billion, which was up 40.0% from the year-ago period, mainly attributable to the impressive sales of external disk storage systems IBM, on the other hand, recorded a revenue growth of only 10.9% year over year to $680.0 million while its market share contracted to 13.6% from 14.7% in the year-ago period. NetApp also posted a strong revenue growth of 55.0% year over year as compared with Hewlett-Packard’s revenue growth of 21.0% year over year. NetApp’s market share increased 11.4% from 8.8% in the prior-year period whereas Hewlett-Packard’s growth remained steady at 11.3%. Dell Inc. (DELL) witnessed a revenue growth of 17.0% year over year to $472.0 million, with a market share of 9.7%. 3Par Inc. (PAR), which triggered a fierce bidding war between Hewlett-Packard and Dell, had a market share of 0.6% in the June quarter. Hewlett-Packard won the bid with a price of $33 per share, but it is unlikely to contribute to market share gain, in our view. According to IDC, IBM attained the #2 position as per market share gains while NetApp was placed at #3, Hewlett-Packard at #4 and Dell at #5. Total storage sales globally spiked up 20.7% to $6.8 billion in the quarter, reflecting a healthy market. Approximately, 3,645 petabytes worth of storage were shipped during the quarter, an increase of 54.6% from the same period last year. Open networked storage (network attached storage, iSCI storage area networks) posted revenues of $4.2 billion, up 29.2% year over year. In the open storage network category, EMC maintained its lead with a 28.9% market share and NetApp came in second with a 13.6% market share. EMC and NetApp also dominated the network attached storage market with respective market share of 45.6% and 25.2%.We believe growth in external storage market was driven by the recovering information technology (IT) spending. EMC’s higher 2010 outlook, based on a much healthier IT spending environment, encourages us to expect a strong market growth in the second half of the year. With an increasing transition to cloud computing technology, we believe cloud computing will drive growth for storage service providers and storage infrastructure suppliers. According to IDC, storage is the fastest growing cloud service, growing from 9.0% of all cloud service revenues in 2009, or $1.6 billion, to an estimated 14.0% in 2013 or over $6 billion of worldwide IT cloud services revenues. We expect large storage providers such as EMC and NetApp to significantly benefit from this transition over the long term. We maintain a Neutral rating on EMC, IBM, Hewlett-Packard, Dell and NetApp on a long-term basis (6–12 months). Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.