Feeds

3PAR picks up share from EMC, HDS and IBM

Gaining in a small way

Boost IT visibility and business value

As expected, 3PAR's results were not great in a bare numbers sense, but a comparison with EMC and other enterprise storage array competition implies that 3PAR is gaining market share.

The company's virtualised InServ arrays compete for enterprise storage business with EMC Symmetrix, HDS USP, HP EVA and XP, and IBM's DS8000 and XIV products. InServ products stand out for their early and strong focus on thin-provisioning and their popularity with service providers.

For its first financial 2010 quarter, 3PAR's revenues were $44.5m, up 4 per cent year-on-year but down 8 per cent compared to the previous quarter. There was a net loss of $1.8m, which compares to a $678,000 profit a year ago. CEO David Scott said this about the numbers: "Though disappointed by our revenue shortfall against expectations, we are pleased that we grew year-over-year in a difficult economic climate, and that we continued to take market share."

Aaron Rakers of Stifel Nicolaus checked this by running the numbers through his spreadsheets, and came up with these comparisons: 3PAR's product revenues were down 3 per cent year-on-year, but EMC Symmetrix revenues fell 28 per cent y-on-y in EMC's second 2009 quarter, to $550m from about $760m a year ago, according to Raker's model, a decline nine times greater than 3PAR's.

Raker's model shows HDS product revenues were down 19 per cent and IBM's disk storage revenues were down 20 percent, both falling roughly five times faster than 3PAR product revenues. He said this comparisons with EMC, HDS and IBM's revenue pattern "implies share gains" by 3PAR.

Without being unkind, we can say 3PAR is a one trick storage array and service pony and doesn't have any balancing revenues from infrastructure software, system-focussed global services, servers, PCs or networking. So a comparatively puny fall in storage product revenues affected its bottom line considerably, whereas EMC and IBM with their vastly larger revenue lines were much less badly affected.

3PAR says it saw considerable price cuts by EMC as it fought to repel 3PAR incursions into its accounts, and some giveaway trial offers for XIV from IBM. There was little evidence of the new V-Max Symmetrix; perhaps that is waiting for the coming FAST automatic data allocation to storage tiers before customer interest ramps up.

The outlook is for full financial year 2010 revenues to be $190m - $205m, the same range as the prelimanary statement. If its competitors continue to lose share relative to 3PAR then, when the economy picks up, 3PAR could benefit disproportionately and be a much stronger company as a result. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

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.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.