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Megabyte's Storage Market Review Q1 2004

See also:- storage history
article:- Chewing over 2003
Squeak! - the Fastest Growing Storage Companies
article:- Solid State Disks - a $10 Billion Market in 2007?
article:- Why Sun will Acquire a Solid State Disk Company
article:- Storage Winners and Losers from the 2000-2003 IT Recession
Articles, Market research, storage news archive, STORAGE News
Thousands of storage news stories cross my screen every quarter. If you didn't have time to wade through them when they crossed the wires, or the pick of the news stories in our storage news archive, then this is a quick way to get a taste for what's been happening in the market.

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Megabyte kept on his guard to ensure that nothing important about the storage market ever escaped his attention.
megabyte's storage news roundup
The first quarter of 2004 was the 3rd quarter of consecutive growth in the storage market following the 3 year US IT recession, and this was reflected in the business results reported by the Fastest Growing Storage Companies in 2004. But not all segments would recover. Technological innovation meant that many storage segments which had been hot prospects before the recession, were being pushed aside in favor of faster cheaper alternatives.

The Most Popular Subjects in Q104

There are over 60 storage categories on STORAGEsearch. The top 5 most popular, based on pageviews in the first quarter of 2004 were as follows. Figures in (brackets) indicate rank a year earlier (in Q103).
  1. Solid state disks (3)
  2. NAS (4)
  3. Backup software (2)
  4. Serial ATA (1)
  5. USB storage (6)
The decline in pageviews for SATA from its #1 position throughout most of 2003, at first looks surprising. But by this time, in Q104, SATA products had been shipping for several quarters and SATA had become a mainstream technology which was starting to get coverage in the general PC press.

We'd reported on the high emerging interest in solid state disks the year before, and later, in Q204, announced that we would be doing more market research into this segment to learn what users really wanted.

Pick of the News Stories in Q104

January 2004 - Toshiba showed their new 0.85-inch hard disk drive at CES. This was the first HDD with multi-gigabyte capacity in a sub-one-inch form factor.

LaCie launched the fastest dual format DVD±RW Drivewith write speeds of 8x and rewrite speeds at 4x.

SanDisk launched their Cruzer Titanium (picture on the right) a sleek, stylish and mechanically virtually indestructible, portable USB flash storage drive.

news image SanDisk
STORAGE search news archive - 2004, January week 1, week 2, week 3, week 4

February 2004 - Growing confidence in the memory market led Infineon Technologies to expand its Memory Development Center at Dresden. Infineon said it planned to invest 120 million Euros (about $150 million) during the next two years.

SimpleTech announced the industry's highest capacity CompactFlash with an 8 GB Type II card using the Company's patented stacking technology.

Hitachi GST announced the Ultrastar 10K300, the world's first 300GB enterprise hard disk drive. Spinning at 10,000 RPM the new drives were being evaluated by major OEMs.
LAKS launched its MP3 Watch and Voice Recorder at CeBIT (picture on the right) with memory capacity upto 256 MB.

It included an integrated voice recorder. The USB socket built into the wrist strap made it possible to transfer data easily to any PC.
news image USB MP3 Watch from Laks
STORAGE search news archive - 2004, February week 1, week 2, week 3, week 4

March 2004 - Spectra Logic achieved a milestone mark as the company has sold its 10,000th Spectra 2K tape library (which was first introduced in October 1997).

LSI Logic announced today that the company will deliver a 4Gb/s Fibre Channel HBA product family supporting the FCIA's vote to extend 4Gb/s Fibre Channel from a drive interconnect to HBAs and switched SAN fabrics.

CATC and Dashcourses said the two companies will deliver open enrollment, hands-on training on InfiniBand, iSCSI, PCI Express, SAS, SATA, SCSI, and USB. STORAGEsearch had speculated a few years earlier that lack of training in new emerging storage interface technologies could be slowing down their adoption.

M-Systems released a new solid-state flash disk with Ultra ATA interface in a 2.5" disk casing up to 90GBytes. This was the highest density 2.5" solid state disk.

Broadcom announced the availability of a new network storage processor chip enabling a new class of low-cost and easy to use NAS devices for the home and small- to medium sized business markets. Entry-level products based on the BCM4780 chip could retail for as little as $99 (without drives), and require no CD installation process.

STORAGE search news archive - 2004, March week 1, week 2, week 3, week 4

Pick of the Storage Market Research Reports in Q104

The Bus Rolls on for USB - Says In-Stat/MDR

SCOTTSDALE, Ariz. - March 8, 2004 - The USB saw continued success in 2003, according to In-Stat/MDR.

With continued adoption of USB in the consumer electronics and communications segments, and the rapid introduction of high-speed USB into PCs and PC peripherals, the total market for USB-enabled devices will experience 18.3% annual growth between 2003 and 2008.
"By all accounts the USB standard has been a huge success," says Brian O'Rourke, a Senior Analyst with In-Stat/MDR. "And USB will see continued success in a variety of applications." The transition from full-speed to high-speed USB is progressing rapidly. "The killer application for high-speed USB is the fact that it is backwards compatible with the hundreds of millions of low-speed and full-speed USB devices already on the market."

In-Stat/MDR has also found that: High speed USB was in about 4 out of 5 PCs shipped in 2003, and will be in nearly all PCs shipping in 2004.

In the PC peripheral market, high speed USB is in an increasing number of devices, particularly external drives, scanners and printers. The fastest growing market for USB in this segment is USB Flash Drives.

In consumer electronics, applications such as digital still cameras, digital camcorders and set top boxes are seeing increased penetration of USB, particularly high speed USB.
usb market - news image
The report, USB 2004: The Bus Rolls On (#IN0401154MI), contains five-year forecasts for Low/Full Speed USB, High Speed USB, and USB OTG. Penetration of each type of USB into 35 separate applications is provided. Responses on USB from In-Stat/MDR's annual Residential Technology Survey are included in the report. Brief profiles of major USB silicon and IP suppliers are also provided.

To purchase this report, or for more information, please contact Erin McKeighan at 480-609-4551; The report price is $3,495. ...In-Stat profile
IDC Reports on External Disk Storage Systems Market

FRAMINGHAM, Mass - March 5, 2004 -Worldwide external disk storage systems factory revenues grew 8.4% year-over-year to $3.7 billion in the fourth quarter of 2003 according to IDC's Worldwide Disk Storage Systems Quarterly Tracker.

"The U.S. was the first to feel the downturn and is now leading in the recovery with a healthy 7% growth rate," said John McArthur, group vice president of Storage research at IDC. "Outside the U.S., much of the perceived growth is the result of a weakened dollar. However, we are at least seeing signs of stabilization, which is an improvement over past quarters."

The total network storage market (NAS Combined with Open and iSCSI SAN) posted 23.5% year-over-year growth in the fourth quarter to more than $2.1 billion, largely due to growth in the Open SAN market. EMC continues to maintain its leadership in the total network storage market with 28.1% revenue share, followed by HP and IBM with 26.0% and 14.4% revenue share, respectively.

In the Open SAN market, which grew 26.4% compared to the same quarter a year ago, HP led with 30.9% revenue share followed by EMC with 25.8% share. In the NAS market, EMC retook the lead with 37.8% revenue share, followed by Network Appliance with 33.3% share. Still in the early market stage, the iSCSI SAN market posted 74% sequential revenue growth with Network Appliance leading the market with 49.0% share, followed by EMC with 33.2% share.

In the total disk storage systems market, IBM moved into a virtual tie with HP for the number 1 position, aided by its traditionally strong fourth quarter sales. HP and IBM had 25.6% and 25.4% share, respectively. EMC maintained the third position with 13.3% revenue share, followed by Dell with 6.5% share. Rounding out the top 5, Hitachi and Sun Microsystems again tied for fifth position. For the full year, the total disk storage systems market posted 1% growth to $19.8 billion. ...IDC profile

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Venture funds in STORAGE
Storage companies which received big investments in the first quarter of 2004 include the following.
A25FB - 2.5"   flash SSDs from Adtron with upto 56 GBytes
Adtron 2.5" SATA / IDE solid state
flash disk with secure erase
acquired etc storage companies
acquired & gone-away storage companies
Storage companies which got acquired in the first quarter of 2004 included the following.
Marketing Views STORAGEsearch SPARC Product Directory ACSL - the publisher