Feeds

Who will be David to EMC's external disk Goliath?

Unstoppable storage king and NetApp crush rivals

Build a business case: developing custom apps

For seven years EMC and NetApp have increasingly dominated the external storage industry. Can they stay at the top?

Charts produced by Stifel Nicolaus analyst Aaron Rakers using his own and IDC numbers and company data show EMC and NetApp as growing at the expense of other mainstream suppliers, including Dell, HP, Hitachi Data Systems, IBM and Oracle/Sun.

The first chart shows revenues in external storage from all these vendors:

External disk revenues from mainstream vendors

Quarterly revenue history for external storage from mainstream vendors.

The second combines EMC and NetApp numbers and compares these to the rest:

EMC and NeApp vs the rest in external storage revenues

EMC/NetApp vs Dell/HDS/HP/IBM/Oracle-Sun in external storage revenues

See how the gap between EMC and NetApp on the one hand, and the rest on the other, has been widening more and more? It's evident that, although NetApp is still growing, it is not at the same pace. Its growth has slowed over the most recent quarters and it has not broken clear of the pack in the same way as EMC has. Both NetApp and EMC face challenges in continuing to grow and take business away from the others.

NetApp faces the conundrum of what to do about server flash: manage it – à la EMC Lightning – or bring data-bound servers apps into the FAS (or E-Series) arrays. Other issues include treating object storage as another FAS ONTAP extension or as a separate product line – like the E-Series. There is also the big data analytics issue which could be dealt with by partnering (Teradata) or buying in technology and establishing the E-Series as a strongly growing product line in the face of DataDirect and competition.

For EMC the big, big challenge is not a product one – all seems set fair on those multiple fronts – but rather a people issue. Big Joe goes later this year, becoming executive chairman. Does the company choose a finance/operations-focused successor like CFO David Goulden or a product engineering visionary like Pat Gelsinger? Whichever candidate is chosen to succeed Joe Tucci – be it one of these front-runners or a third contender – the EMC machine will crank out new products and grow revenues for a few quarters. But will it run out of steam as the new CEO lets EMC miss developing storage and information management trends?

How will EMC deal with the rise of DAS and converged server/storage/networking infrastructures demanding closer integration than VCE can provide? How will the relationship with Cisco develop? Will it follow the Dell model? Perhaps the archiving and content management software side of the EMC house needs a radical makeover, or needs to make an acquisition. Should EMC buy CommVault and have done with Documentum? There are lots of big questions here.

The key is the new CEO. EMC does not want to appoint its version of Leo Apotheker to the helm, although, as it happens, Leo is free at the moment ... ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
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
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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
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.