Feeds

Grim outlook for Big Storage as revenues dip across board

Snapping up the minnows only keeps the wolf at bay for so long

Internet Security Threat Report 2014

Mainstream storage vendors seem to be in trouble as Dell, HP and IBM's storage revenues have tanked over the past two years.

Stifel Nicolaus analyst Aaron Rakers created a spreadsheet comparing his records of how these vendors' storage revenues changed quarter by quarter. El Reg's storage desk charted the numbers:

Vendor storage rev percentages by Q

Storage vendor revenue growth percentages by quarter. (Click to enlarge)

The reddish area marks out negative growth rates. So, HP and IBM have seen their storage revenues decline pretty consistently since their first fiscal 2012 quarter, while Dell's storage revenues have been in decline over the whole period.

EMC and NetApp's storage revenue growth rates have stayed positive, except for a blip by NetApp in its third fiscal 2012 quarter. It is now growing its storage revenues slightly faster than EMC.

Three take-away points:

  1. The storage market has become less healthy and growth has slackened. Recessions are a nuisance.
  2. The two standalone storage vendors have grown more than the three server/storage/system vendors.
  3. Buying standalone storage startups has not prevented the system vendors' revenues declining. They would probably be tanking more if they hadn't bought upstarts like Compellent, 3PAR and Storwize but they are still tanking.

Dell's storage tanked deeper and faster that that of IBM and HP. While its trend is flattening out, can it sustain the lessening of its decline?

From the revenue growth point of view, storage arrays are pretty straightforward. The real growth magic comes from startups like Actifio, Nimble Storage, Nutanix, Tegile, Tintri and Veeam, and perhaps from those punting all-flash arrays like Pure Storage, Violin Memory and WhipTail.

What are the mainstream system vendors going to do to rescue their businesses? ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.