Feeds

3PAR picks up share from EMC, HDS and IBM

Gaining in a small way

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.