December 4, 2009 – Market research provider IDC released the results of its quarterly Disk Storage Systems Tracker today, showing a total market revenue decline of 9.6 percent for Q3 compared to the same period in 2008.

Steve Scully, research manager of enterprise storage at IDC, reported that while the market is experiencing another year-over-year decline, the rate of decreasing revenue has started to slow.

"The stability in the storage market that IDC first began to see last quarter is now being felt more broadly by storage vendors,” Scully said. “The market experienced a sequential gain over the previous quarter, with many of the top storage vendors posting increases.”

External disk storage systems factory revenues were $4.4 billion, a year-over-year 10 percent decline. The network disk storage market posted a total decline of 7.6 percent year over year in Q3, with revenues of $3.4 billion, according to IDC’s release.

While disk storage system vendors continue feel the pressure of total revenue declines, the overall storage capacity shipped continued to grow in Q3. Total disk storage systems capacity shipped reached 2,661 petabytes, growing 21 percent year over year.

Despite total market declines, some areas are showing signs of a mild recovery. “Both the total NAS and iSCSI markets posted year-over-year gains, while the FC SAN market had a lower rate of decline than in previous quarters,” Liz Conner, research analyst, Storage Systems for IDC was quoted to say.

According to IDC, the NAS market grew 2.2 percent year over year and the iSCSI SAN market continued to show momentum, posting 24.7 percent revenue growth compared to Q3 in 2008.

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