HP's third quarter storage numbers drop
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(InfoWorld) - Major storage vendors reported double-digit sales growth in the third quarter with the exception of Hewlett-Packard Co., which suffered a double-digit decline. HP sales of external controller-based disk storage slumped by 11.9 percent from the year ago quarter to US$475 million in the three months that ended Sept. 30, according to a report out Tuesday from research firm Gartner Inc. HP trailed market share leader EMC Corp., whose 17.4 percent revenue gain to $954 million earned it a 25.5 percent market share. IBM Corp. ranked second with a 14.8 percent share, as its revenue grew 17.9 percent to $553.1 million. While HP held onto third place, its market share slipped to 12.7 percent from 15.5 percent in the third quarter of 2005. Dell Inc. ranked fourth with a 10.8 percent share and Hitachi Data Systems Corp. fifth with a 7.3 percent share. The storage vendor with the strongest growth was sixth-ranked Network Appliance Inc., which saw sales jump 20.4 percent to $272 million for a 7.3 percent share. Sun Microsystems Inc. trailed the pack with a 5.3 percent share. In the third quarter, Sun completed its first year of StorageTek ownership, which it acquired for $4.1 billion. Overall, the global market for disk storage grew 7.4 percent from the year ago quarter to $3.74 billion. HP aside, Gartner says the major vendors strengthened their place in the market in the third quarter through some consolidation and enhanced marketing efforts. HP Chief Executive Officer Mark Hurd alluded to weak storage sales in a quarterly financial conference call with investment analysts Nov. 16. HP's storage sales grew only 1 percent in it's fiscal fourth quarter, which ended Oct. 31, the weakest of any of its product lines. "Our growth profile of our storage business is negatively impacted by our mix toward the declining tape market," Hurd told analysts. "We are not happy with our storage growth in the fourth quarter and we need to do a better job of driving top line momentum in the coming year."
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Intel Corp. lowered its revenue projections for its third quarter yesterday, citing slow consumer purchases across the globe.
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Hewlett-Packard Co. HPQ.N and   Sun Microsystems Inc. SUNW.O were among the fastest-growing   data storage providers in the second quarter, while EMC Corp.   EMC.N and Dell Inc. DELL.O lagged overall market growth,   researcher IDC said on Thursday.
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Falling prices, decreased sales cause drive maker to refocus.
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SAN JOSE, Calif. _ Hewlett-Packard this week announced three initiatives to reduce workforce costs even as it reported strong growth in revenue and profit because of brisk holiday sales of consumer products such as laptops and photo printers.
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Hitachi Global Storage Technologies and Hewlett Packard yesterday announced availability of what they claim are the industry&#39;s first storage and server systems offering 300GB Fibre Channel and small computer system interface (SCSI) disk drive capacity.
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Hewlett-Packard says it is putting 300GB hard drives into storage devices and servers, with more products in October.
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Amazonâs S3 online storage service was down for several hours, taking start-ups and other customers out with it.
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HP (NYSE:HPQ) (Nasdaq:HPQ) today announced the industry's first easy-to-use storage systems that drive down cost and complexity for small and medium businesses (SMBs) grappling with the exponential growth of data.
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Wants to hang out with the cool kids HP has introduced what it has dubbed its green storage technology that can cut storage array power and cooling costs in data centers by 50 per cent.â¦
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IBM and HP tied for second place behind EMC in external storage sales for the first three months of 2007.
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(InfoWorld) - Number two storage systems maker Hewlett-Packard Co. (HP) has closed the gap between it and number one EMC Corp. to what research company IDC calls "a statistical tie." But EMC argues its lead over HP is greater if co-branded Dell-EMC storage devices are counted as EMC sales instead of as Dell Inc. sales. According to IDC's Worldwide Quarterly Disk Storage Tracker, EMC Corp. held an industry-leading 20 percent market share for external disk storage systems in the second quarter of 2006, followed by HP with a 19.3 percent share. EMC had a 21 percent share to HP's 18.9 percent in the second quarter of 2005. In the latest results, IBM Corp earned third place with a 13.2 percent share, while Hitachi Data Systems Corp., Dell Inc. and Sun Microsystems Inc. recorded market share of between 7 percent and 8 percent, which IDC labeled a three-way tie. IDC considers companies to be tied for market share if the difference between them is less than 1 percentage point, said Brad Nisbet, program manager for IDC Storage Systems. The second quarter figures show a tight race between EMC and HP, but EMC spokesman Greg Eden said EMC is further ahead than those numbers suggest. The market share numbers don't count storage devices that EMC manufactures for Dell. They are co-branded as Dell/EMC storage but counted as Dell sales revenue, he said. If Dell/EMC sales were counted as EMC revenue, the company's second quarter market share would be 26.1 percent, Eden said. IDC confirmed that number. However, EMC stumbled in the second quarter when inventory problems prevented it from fulfilling orders for some of its Symmetrix DMX3 high-end and Clarion CX3 midrange storage models. "We had double-digit growth in our bookings for our storage," Eden said, but customers wanted the newer models and were not content to buy the older ones. Manufacturers with the strongest second-quarter percentage growth from a year earlier were Sun Microsystems Inc. (19.1 percent), Hitachi (17 percent) and HP (10.3 percent.). "HP has been executing well under new management," Nisbet said, referring to President and Chief Executive Officer Mark Hurd, who replaced Carly Fiorina in March 2005. HP's storage revenue grew by 22 percent in Western Europe in the quarter, he said. Sun reported the strongest quarterly jump due in part to its acquisition of storage vendor StorageTek in 2005 and the development of the first StorageTek disk storage products, Nisbet said, while Hitachi recorded strong sales of its high-end storage products. IDC said the second quarter, which ended June 30, was the 13th consecutive quarter of revenue growth for the external disk storage sector. Revenue rose 8.5 percent to US$4.2 billion, from $3.8 billion a year earlier. Storage demand is growing as enterprises generate more data they have to manage and archive, he said. "Storage continues to be an integral component of a full (IT) solution," Nisbet said.
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(InfoWorld) - Enterprises are reaching deeper into their pockets to add data storage capacity to their computer networks, according to an industry report released Friday. Worldwide revenue for external disk storage systems rose to $4.3 billion in the third quarter of 2006, a 9.9 percent increase compared to the same period last year, according to the research firm IDC. This is the 14th consecutive quarter of storage revenue growth, a trend IDC attributes to more companies buying storage because of the demand to save more data, and to existing customers buying larger capacity systems. "There is definitely a bump in the quarter on the systems side," said Brad Nisbet, manager of IDC's Storage Systems Program. Sales growth has been particularly strong for midrange-priced systems while flat for high-end systems, Nisbet said. While the cost per megabyte of storage has continued to decline, the average selling price of systems has continued to rise because enterprises are buying larger and larger capacity storage. The market share rankings of the top storage vendors were unchanged in the latest report. EMCÂ kept the No. 1 spot with a 21.4 percent share on an 18 percent increase in revenue over the year-ago quarter to $927 million. Hewlett-Packard ranked second with a 17.6 percent share on only a modest 1.8 percent revenue increase to $760 million. Third place went to IBM, with a 13.7 percent share. Dell, which sells co-branded Dell/EMC storage, ranked fourth with an 8 percent share, and Hitachi Data SystemsÂ was in fifth place with a 7.9 percent share. The entire disk storage systems market grew 7.9 percent to $6.186 billion. In the overall market, the top five vendors, in order of share, were HP, IBM, EMC, Dell, and Hitachi. Also of note, the market for storage area network (SAN) technology grew 17.3 percent. The SAN market excludes sales of network-attached storage (NAS), in which servers are liked to just one storage appliance. SAN refers to a larger network of multiple storage devices that are grouped together as a single resource. In particular, storage networks linked together with iSCSI (for Internet Small Computer System Interface) connections showed dramatic growth of 108.4 percent over the third quarter of 2005. IDC attributes that growth to the ease of use and low total cost of ownership of iSCSI-based networks compared Fibre Channel-connected storage. The IDC report excludes sales of tape storage technology.ADVERTISEMENTNEW IT SERVICES FROM IBM: EASIER TO BUY AND IMPLEMENTDiscover a simpler, more cost-effective way to get the solutions your company needs to grow more flexible and efficient.
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The Q3 report shows declining numbers, but there's more to the story.
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Sandisk Corp. said on Wednesday its  quarterly profit tripled but shares fell 18 percent as its  results missed Wall Street estimates because an oversupply of  memory cards drove down prices.
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(InfoWorld) - Last year's HP Technology Forum was chased out of New Orleans by Hurricane Katrina. This year, storm clouds of a different sort hang over the event. As an estimated 6,000 attendees converge on Houston for the annual Hewlett-Packard user conference, the subject on many minds is the one the company is most loathe to discuss: theÂ shakeup of HP's boardÂ and theÂ prospect of criminal chargesÂ related to a spying scandal. The California Attorney General and a Congressional committee are among the institutions probing HP's possibly illegal methods of investigating news leaks from its board. HP has until Tuesday to respond to an invitation from the Oversight and Investigations Subcommittee of the Energy and Commerce Committee for HP's Chairman Patricia Dunn and General Counsel Ann Baskins to testify at a Sept. 28 hearing in Washington. But at the Technology Forum, a gathering of HP user groups, partners and other vendors, HP is focusing on its business success, which is considerable. With revenue, earnings and stock price all resurgent in the last year, HP CEO Mark Hurd could rightly say, "Pay no attention to that prosecutor behind the curtain," when he delivers a keynote address on Sept. 18. In the quarter ended July 31, HP's earnings-per-share (EPS) topped analysts' estimates at $0.52 on 5 percent revenue growth to $21.9 billion, compared to the year ago quarter. Across many of its business lines, HP, of Palo Alto, California, has gained on rivals, said industry analyst Rob Enderle. HP personal computer sales have grown with its "the computer is personal again" marketing campaign, Enderle noted. IBMÂ sold its personal computer businessÂ to Lenovo Group, in 2005, and Dell has suffered negative publicity from the AugustÂ recall of 4.1 million fire-prone batteriesÂ in Dell laptops. In storage, HP closed the market share gap with EMC in second quarter numbers released Aug. 29 by research firm IDC. With EMC's 20 percent share, based on unit sales, to HP's 19.3 percent, the two are in a "statistical tie" said Brad Nisbet, an analyst with IDC. "HP has been executing well under new management," Nisbet said, referring to Hurd, CEO since March 2005. In servers, HP is a strong second to IBM, according to IDC market share numbers, but has made some errors, said Enderle. It still is using Intel's Itanium processor in its high-end Integrity servers, which rivals aren't embracing. Gartner research shows that 90 percent of the Itanium chips shipped in the first quarter of this year ran on HP servers; neither Dell nor IBM build Itanium computers. Technology Forum organizers get tight-lipped when the conversation shifts to the board scandal. "That's HP's business," said Nina Buik, vice president of Encompass, one of the HP user groups planning the event. "We're not focused on those issues unless it impacts the technology." And as long as the scandal doesn't touch Hurd personally, the customer satisfaction should be unaffected, said Crawford Del Prete, senior vice president of research at IDC. . "I don't think [the scandal] is a drag on the company's success," he said. "I have not found one customer who said 'I'm not going to do business, or I am concerned about doing business, with Hewlett-Packard as a result of this.'" HP Technology forum runs from Sunday to Thursday this week.
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TechWeb - Customers are decoupling storage from server purchases, which explains why EMC and NetApp earnings were up and why Sun and HP were flat or down, Warmenhoven says.