Feeds

Mixed fortunes in becalmed storage market

Order cancellations

  • alert
  • submit to reddit

Build a business case: developing custom apps

The enterprise storage and switches market experienced better than expected US sales last quarter, but European revenues fell short of expectations.

That's according to the latest survey of storage resellers by channel consultancy Global Touch which reports how mixed fortunes for the channel on either side of the Atlantic mirrored the relative showing of vendors themselves.

Channel Tracker is a quarterly survey of resellers, disties, systems integrators etc. produced by Global Touch. The survey participants collectively account for more than $100 billion in annual sales, so their experience provides a worthwhile snapshot of the health (or otherwise) of the market.

For Q4, three in four (75 per cent) of US respondents to Global Touch's Channel Tracker survey reported enterprise storage and switches equipment sales in-line with expectations. By contrast, 62 percent of Europeans quizzed during the survey said Q4 revenues fell "below-to-extremely below" sales expectations mainly because of order cancellations.

Comparing sequential quarterly revenue growth (Q4 compared with Q3), US survey respondents indicated that sales of "HP, IBM, Snap, and Sun were "in-line or in-line-to-ahead of expectations". Sales of Brocade, EMC, Hitachi Data Systems, and Network Appliance kit by US resellers "were below-to-extremely below expectations", according to the study.

Meanwhile sales of Brocade, HP, Hitachi Data Systems, and Snap equipment held up well in Europe, while revenue for IBM, Network Appliance, and Sun gear fell well short of expectations this side of the Atlantic. EMC resellers in Europe experience mixed fortunes: half exceeded sales expectations but the other half failed to reach targets.

Looking ahead to next quarter, Channel Tracker's US panellists predict mixed fortunes for vendors.

Respondents predict "strong or moderate-to-strong" (between 10 and 19 per cent) growth in Q12003 compared to Q12002 for Brocade, EMC, HP, and Snap. Predicted sales for Hitachi Data Systems, IBM, Network Appliance, and Sun will be moderate-to-flat, US resellers surveyed predict.

Although - like their networking reseller counterparts - the channel was left battered by "brutal" market conditions in Europe, European resellers are more optimistic about sales in 2003 than their American cousins.

A rise in sales in 2003 compared to 2002 is predicted by 39 per cent of European resellers quizzed. By contrast, more than half 59 per cent of US respondents to the Channel Tracker survey expect revenues to decline this year.

The data for the Enterprise Storage and Switches edition of Global Touch's Channel Tracker report was collected from participants during the first two weeks in December 2002, and focuses on sales in the fourth calendar quarter (October 1 to December 31, 2002).

A summary of the report can be found here, and the full report can be purchased here for $399. A four-quarter subscription to the report costs $1,436.00. ®

Related Stories

Enterprise storage 'loses profits momentum'
The great storage giveaway
And much more besides in The Register's Enterprise Storage Channel

Boost IT visibility and business value

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?