IBM, HP Led World in Tape Storage Markets in 2006

May 5, 2007

HP is selling the most units, but IBM is pulling in far more revenue due to dominance in the high-end enterprise tape storage market.

Researcher IDC reported May 3 that the worldwide branded tape-drive market in 2006 continued to be dominated by two of the usual suspects: IBM and Hewlett-Packard.

According to the IDC year-end report, "IDC Worldwide Branded Tape Marketshare Report 2006" by analyst Robert Amatruda, HP held the No. 1 position in worldwide market share (overall shipments) at 34 percent, but Big Blue made the most revenue in the sector ($538.2 million to $492 million for HP).

HP, in Palo Alto, Calif., banked 31 percent of all tape drive revenue, while IBM sold only 15 percent of all tape drives shipped worldwide but brought in 33 percent of all tape drive revenue. The numbers plainly show that HP is focusing heavily on selling to the mid-tier and SMB markets, while IBM dominates the high-end tape storage market.

Dell and Quantum also continue to be key suppliers in the market, and their influence appears to be increasing. At the close of 2006, Dell and Quantum held 23 percent and 14 percent, respectively, of total worldwide shipments. Dell earned 14 percent of the total worldwide revenue, with Quantum at 7 percent.

"The majority of midrange tape drives continue to be brought to market through branded channels by top-tier server suppliers," Amatruda wrote. "HP was the dominant supplier in the midrange tape drive market, selling 43 percent of the 289,264 total standalone drives shipped in 2006 and 39 percent of the total $764.5 million in revenue. Dell held second place with 28 percent of total worldwide midrange tape drive shipments."

In the fourth quarter of 2006, the market rebounded in both shipments and revenue over third quarter 2006 results, Amatruda wrote. In the fourth quarter of 2006, total shipments increased sequentially by 6 percent, totaling 256,371, while total worldwide revenue increased by 2 percent, totaling $404.8 million.

However, the worldwide branded tape automation software segment experienced the largest sequential increases. In the fourth quarter of 2006, shipments of autoloaders and tape libraries increased 11 percent over third quarter 2006, while total revenue increased by a whopping 41 percent.

Other highlights of the analysis included:

-- IBM held the top revenue position with 33 percent of total worldwide branded tape driveautomation software revenue at the close of 2006.

-- HP held second place with 22 percent of total worldwide branded tape drive automation revenue in 2006.

-- Dell held the No. 2 position - behind HP - with 23 percent of worldwide total branded tape drive and tape automation shipments in 2006.

The enterprise tape drive market has two competitors, IBM and Sun Microsystems (formerly StorageTek). Few drives in this category are sold in a typical OEM manner; most enterprise drives are sold direct by IBM and Sun, Amatruda reported.

At the close of 2006, IBM sold 56 percent of the total 14,752 enterprise drive shipments, while Sun held the remaining 44 percent. IBM was the leader in revenue share with 62 percent of the $300 million in worldwide enterprise tape revenue, compared with Sun's 38 percent, Amatruda wrote.

In comparing 2005 to 2006 full calendar-year results, IBM increased its market share for worldwide branded tape revenue nearly 5 percent.

In 2006, IBM Research announced a new world record, packing data onto a test tape at a density of 6.67 billion bits per square inch, more than 15 times the data density of today's most popular industry standard magnetic tape products.

Copyright 2007 by Ziff Davis Media, Distributed by United Press International

Explore further: LIVE: Facebook goes public

Related Stories

LIVE: Facebook goes public

May 18, 2012

(AP) -- It's Facebook's big day. The site, which was born in a dorm room eight years ago and has grown into a worldwide network of almost a billion people, is making the most talked-about stock market debut in years.

15,000 reasons to worry about invasive species

November 9, 2009

A day at the beach in Wisconsin's North Woods didn't used to go like this. Candy Dailey spent a Fourth of July holiday splashing with grandkids on the sandy shore of Lake Metonga when she felt a nasty sting on her foot.

Quantum Upgrades StorNext Software

April 5, 2007

StorNext 3.0 will help cut data-retention cost and enable customers to expand storage capacity and replace storage devices while keeping the system online.

Digital revolution takes on movie industry

April 4, 2006

With Hollywood's largest studios launching a download-and-own film service via rivals and, the move towards digital distribution also means the move toward D-Cinema.

TSMC Unveils Nexsys 65nm Process Technology Plans

May 3, 2005

Taiwan Semiconductor Manufacturing Company, unveiled its newest semiconductor manufacturing process today at a Technology Symposium attended by over 400 of the industry’s leading IC companies. First wafers are expected ...

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.

Dutch unveil giant vacuum to clean outside air

October 25, 2016

Dutch inventors Tuesday unveiled what they called the world's first giant outside air vacuum cleaner—a large purifying system intended to filter out toxic tiny particles from the atmosphere surrounding the machine.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.