Seeking Alpha

Storage industry returns to growth; EMC takes share from IBM

  • After falling 3.5% Y/Y in Q3, external disk storage system sales rose 2.4% in Q4, says IDC. The growth came even though sales of the servers that interact with these systems fell an estimated 4.4%.
  • Total disk storage sales, which include storage subsystems found within servers, rose 1.3% in Q4 after dropping 5.6% in Q3. IDC attributes the turnaround to "traditional year-end budget flushes, improved economic sentiment, and a strong desire to address long-standing storage infrastructure inefficiencies."
  • Market leader EMC, which posted strong Q4 numbers to go with light guidance, saw its external disk share rise 220 bps Y/Y to 32.9%, and its total disk share rise 200 bps to 25.8%. The gains largely came at the expense of restructuring IBM, whose shares respectively fell 190 bps and 200 bps to 13% and 14%.
  • H-P's (HPQ) external disk share rose 30 bps to 9.6%, and its total disk share 40 bps to 16.3%. NetApp (NTAP), which delivered nearly in-line revenue and soft guidance last month, saw its external share fall 10 bps to 11.5%, and its total share stay flat at 9%. Private Dell's total share fell 140 bps to 9.9%.
  • Hard drive/assembly suppliers: STX, WDC, HTCH
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Comments (5)
  • brianhutch
    , contributor
    Comments (322) | Send Message
     
    The message is clear , sell IBM and buy HPQ
    7 Mar 2014, 08:19 PM Reply Like
  • CandleFlight
    , contributor
    Comments (348) | Send Message
     
    Perhaps instead of focusing solely on the server storage providers, it would be good to include deliveries from the disk drive manufactories, such as Western Digital, Seagate, and maybe Toshiba, to name three. Also, who is buying? Is it industry or governmental entities?
    7 Mar 2014, 11:40 PM Reply Like
  • Investing Doc
    , contributor
    Comments (875) | Send Message
     
    It would be sell IBM if that was all IBM did.
    8 Mar 2014, 01:38 AM Reply Like
  • slam stocks
    , contributor
    Comments (1405) | Send Message
     
    IBM is quite clear, Hard Drives is up for sale and consulting through the "Watson" program is the future. The time to buy is during dips as they restructure, which is "now!"
    9 Mar 2014, 09:54 AM Reply Like
  • brianhutch
    , contributor
    Comments (322) | Send Message
     
    IBM is a good short .

     

    http://bit.ly/1eoWXrY
    10 Mar 2014, 01:45 PM Reply Like
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