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Gartner 3Q2011 WW ECB Disk Storage Market

Just after IDC released their numbers of their worldwide Disk Storage System Tracker (Read my blog) 10 days ago, Gartner released their Worldwide External Controller Based (ECB) Disk Storage Market report for Q3 of 2011.

The storage market remains resilient (for now) and growing 10.4% in terms of revenue, despite the hard economic conditions. The table below shows the top 7 storage vendors and their relation to their Q2 numbers.

EMC remained at the top and gained a massive 3.6% jump in market share. Looks like they are firing all cylinders and chugging like an unstoppable steam train. IBM gained 0.1% in second place as its stable of DS8000, XIV and Storewize V7000 is taking shape. Even though IBM has been holding steadily, I still think that their present storage lineup is staggered and lacks that seamless upgrade path for their customers.

NetApp, which I always terms as the “little engine that could”, is slowing down. They were badly hit in the last quarter, delivering lower than expected revenue numbers according to the analysts. Their stock took a tumble too. As quoted by Gartner, “NetApp’s third-quarter results reflect an overdependence on a few large customers, limited geographic coverage in high-growth countries and increased competition from Dell, EMC, HP and IBM in the midrange modular ECB disk array market segment.

I wrote in my recent blog, that NetApp has to start evolving from a pure-play storage vendor into a total storage and data management solution vendor. The recent rumours of NetApp’s interests in Commvault and Quantum should make a lot of sense if NetApp decides to make that move. Come on, NetApp! What are you waiting for?

HP came back strong in this report. They are in 4th place with 10.4% market share and hot on NetApp’s heels. After many months of nonsensical madness – Leo Apotheker firing, trying to ditch the PC business, the killing of WebOS tablet, the very public Oracle-HP spat – things are beginning to settle a bit under their new CEO, Meg Whitman. In a recent HP Discover conference in Vienna, it was reported that the HP storage team is gung-ho of what they have in their arsenal right now. They called it “The 4 Jewels of HP Storage Crown” which includes 3PAR, Ibrix, StoreOnce and LeftHand. They also leap-frogged over HDS and Dell in the recent Gartner Magic Quadrant (See below).

Kudos to HP and team.

HDS seems to be doing well, and so is Dell. But the Gartner numbers tell a different story. HDS, lost market share and now shares 7.8% market share with Dell. Dell, despite its strong marketing on Compellent, could not make up its loss after breaking off with EMC.

Fujitsu and Oracle completes the line up.

My conclusion: HP and IBM are coming back; EMC is well and far ahead of everyone else; NetApp has to evolve; Dell still lacking in enterprise storage savviness despite having good technology; No comments about HDS. 

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Magic on storage players

It’s that time of the year again where Gartner releases it Magic Quadrant for the block-access, external controller-based, mid-range and high-end modular disk arrays market. This particular is very important because it represents the mainstay of the overall storage industry, viewed from a more qualitative angle. Whereas the other charts and reports work with statistics and numbers, this is the chart that everyone in the industry flock to. Gartner Magic Quadrant (MQ) is the storage industry indicator of who’s are the leaders; who are the visionaries; who are the executive wizards and who are the laggards (also known as niche players).

So, this time around, who’s in the Leaders Quadrant?

The perennial players in the Leader’s Quadrant are EMC, IBM, NetApp, HP, Dell, and HDS. In my previous blog, I shared with you the IDC figures about market shares but the Gartner MQ shows are more subtle side, and one that perhaps carry more weight to organizations.

From the IDC numbers announced previously, we have seen Dell taking a beating. They have lost market share and similarly in this latest Gartner MQ, they have lost their significance of their influence as well. Everyone expected their Compellent solution to be robust and having EqualLogic, Ocarina and Exanet in its stable would strengthen their presence in the storage industry. Surprisingly, Dell lost on both IDC statistically charged market numbers and this Gartner MQ as well. Perhaps they were too hasty to dump EMC a few months ago?

Gartner also reported that HP has made significant leap in the Leader’s Quadrant. It has leapfrogged over HDS and IBM when comparing their position in Gartner’s MQ chart. This could be coming from their concerted effort to pitch their Converged Infrastructure, a vision that in my opinion, simplified computing. HP Malaysia shared with me their vision a few months ago, and I was impressed. What I was not very impressed then and even now, is that their storage solutions story is still staggered, lacking the gel. Perhaps it is work in progress for HP, the 3PAR, the IBRIX and the EVA. But one things for sure. They are slowly but surely getting the StoreOnce story right and that’s good news for customers. I did a review of HP StoreOnce technology a few months ago.

Perhaps it’s time for HP to ditch their VLS deduplication, which to me, confuses customers. By the way, HP VLS is an OEM from Sepaton. (Sepaton is “No tapes” spelled backwards)

Here’s a glimpse of last year’s Magic Quadrant.

 

In the Niche Quadrant, there are a few players making waves as well. 2 companies to watch out for are Huawei (they dropped Symantec 2 weeks ago) and Nexsan. Nexsan has been beefing up its marketing of late, and I often see them in mailing lists and ads on some websites I went to.

But the one to watch will be Huawei. This is a company with deep pockets, hiring the best in the storage industry and also has a very strong domestic market in China. In the next 2-3 years, Huawei could emerge as a strong contender to the big boys. So watch out!

Gartner Magic Quadrant is indeed weaving its magic and this time around the magic is good to HP.

Crisis? What crisis?

The storage train is still chugging hard and fast as IDC just released its Worldwide Disk Storage System Tracker for 3Q11. Despite the economic climate, the storage market posted a strong 8.5% revenue growth and a whopping 30.7% growth in terms of petabytes shipped. In total, 5,429PB were shipped in Q3.

So how did everyone do in this latest Tracker report?

In the Worldwide Total External Disk Storage Systems, EMC is still holding on to the #1 position, with 28.6%. IBM and NetApp came in at 12.7% and 12.1% respectively. The table below summarizes the percentage view of the top storage players, in terms of revenue.

From the table, everyone benefited from the strong buying of storage in the last quarter. EMC gained a strong market gain of almost 3%, while everyone else either gained or lost less than 1% market share.  But the more interesting numbers are not from the market share column but the % growth column.

HDS posted the strongest growth of 22.1%, slightly higher than EMC of 22.0%. HDS is beginning to get their story right, putting the right storage solutions in place, and has been strongly focused in their services offering as well. That’s simply great news for HDS because this is a company is not known for their marketing and advertising. The Japanese “culture” within HDS probably has taught it to be prudent but to see HDS growing faster than the big boys like IBM and HP is something their competitors should respect. I believe customers are beginning to see the true potential of HDS.

As for EMC, everyone labels them as the 800-pound gorilla but they have been very nimble and strong in the storage market for many quarters. This is due to the strong management team headed by Joe Tucci and his heir-in-waiting, Pat Gelsinger. Several of their acquisitions are doing well, with the likes of Isilon, Greenplum, Data Domain, and of course VMware. Even though VMware does not contribute the EMC revenue numbers, the very fact that EMC owns more than 80% of VMware has already given EMC a lot of credibility in the storage battlefield. They are certainly going great guns.

NetApp took a hit in the last quarter, when they missed the street revenue numbers last quarter. Their stock took a beating and there were rumours in the market that NetApp might acquire Commvault and Quantum to compete with EMC. EMC has been able to leverage the list of companies and acquired solutions very well, from data protection solutions like Networker and Avamar, deduplication solutions like Data Domain and Avamar, Documentum for content management and so on, while NetApp has been, for the longest time, prefer a more “loosely-coupled” approach with their partners for a more complete solution set.

Other interesting reports from IDC are the Open SAN/NAS market, the NAS market and the iSCSI market.

The Open SAN/NAS market combination, according to IDC goes like this:

EMC 31.3%
NetApp 14.4%

In the NAS only market, EMC and Isilon (under the one EMC umbrella) competes with NetApp and the table is like this:

EMC 46.7%
NetApp 30.7%

The iSCSI only market is led by Dell (EqualLogic and Compellent combined), followed by EMC and IBM. Here’s the summarized table:

Dell 30.3%
EMC 19.2%
IBM 14.0%

The strong growth is indeed good news as the storage market continues to weather the economic crisis storm. I have been saying this all along. The storage market in IT is still the growth engine as data keeps growing and growing, even though it was never the darling of the IT industry. Let’s hope the trend continues.

IDC EMEA External Disk Storage Systems 2Q11 trends

Europe is the worst hit region in this present economic crisis. We have seen countries such as Greece, Portugal and Ireland being some of the worst hit countries and Italy was just downgraded last week by S&P. Last week was also the release of the 2Q2011 External Disk Storage Systems figures from IDC and the poor economic sentiments are reflected in the IDC figures as well.

Overall, the factory revenue for Western Europe grew 6% compared to the year before, but declined 5% when compared to 1Q2011. As I was reading a summary of the report, 2 very interesting trends were clear.

  • The high-end market of above USD250,000 AND the lower-end market of less than USD50,000 increased while the mid-end market of between USD50,000-100,000 price range declined
  • Sentiments revealed that storage buyers are increasingly looking for platforms that are quick to deploy and easy to manage.

As older systems are refreshed, larger companies are definitely consolidating into larger, higher-end systems to support the consolidation of their businesses and operations. Fundamentals such as storage consolidation, centralized data protection, disaster recovery and server virtualization are likely to be the key initiatives by larger organization to cut operational costs and maximizing of storage economics. This has translated to the EMEA market spending more on the higher-end storage solutions from EMC, IBM, HDS and HP.

NetApp, which has been always very strong in the mid-end market, did well to increase their market share and factory revenue at IBM’s and HP’s expense because their sales were flattish. Dell, while transitioning from its partnership with EMC to its Dell Compellent boxes, was the worst hit.

The lower-end storage solution market, according to IDC figures, increased between 10-25% depending on the price ranges of USD5,000 to USD10,000 to USD15,000. This could mean a few things but the obvious call would be the economic situation of most Western European SMBs/SMEs. This could also mean that the mid-end market could be on the decline as many of the lower-end systems are good enough to do the job. One thing the economic crisis can teach us is to be very prudent with our spendings and I believe the Western European companies are taking the same path to control their costs and maximizing their investments.

The second trend was more interesting to me. The quote of “quick to deploy and easy to manage” is definitely pushing the market to react to more off-the-shelf and open components. From an HP stand point of their Converged Infrastructure, the x86 strategy for their storage solutions is making good sense, because I believe there will be lesser need for proprietary hardware from traditional storage vendors like EMC, NetApp and others (HP included). Likewise, having storage solutions such as VSA (Virtual Storage Appliance) and storage appliance software that runs on the x86 platforms such as Nexenta and Gluster could spell out the next wave in the storage networking industry. To have things easy, specialized appliances which I have spoke much of lately, hits the requirement of “quick to deploy and easy to manage” right on the dot.

The overall fundamentals of the external disk storage systems market remain strong. Below is the present standings in the EMEA market as reported by IDC.

The rise of the specialized appliance

Compute and storage are 2 components within the IT infrastructure which are surely converging. SAN and NAS are facing their greatest adversary yet, and could be made insignificant if the cloud and virtualization game had their way. This is giving rise to the a new breed of solution, a specialized appliance where both compute and storage are ONE. Rising from the ashes of shared storage (SAN and NAS, take note), we are beginning to see things going back to way of direct, internal storage.

There were some scuffles in the bushes about 5 years, where Sun (now Oracle) was ahead of its game. The Sun Fire X4500 (aka Thumper) was one of the strong candidates to challenge the SAN/NAS duopoly in this networked storage period. X4500 integrated both the server and the storage components together, using ZFS as a file system and volume manager to deliver a very high throughput on all the JBOD disks very efficiently. ZFS acted as the RAID, so there was no need to have specialized RAID hardware. This proved that a very high performance storage solution can be easily integrated using standard off-the-shelf infrastructure components and the x86 architecture. By combining both compute and storage together, there were hints that the industry was about to rise up to Direct-Attached Storage (DAS) again, despite its perceived weakness against SAN and NAS.

Unfortunately, the applications were not ready for DAS then. Besides ZFS, applications such as databases, emails and file servers were not ready to jump into the DAS bandwagon and watch them ride into the sunset. But the fairy tale seems to be retold again, and this time, the evidence that DAS could rise again is much stronger.

The catalyst to this disruptive force? Virtualization!

I mentioned that VMware is the silent storage killer a few blogs ago. Needless to say, that ruffled a few featheres among the readers. I have no doubt that virtualization is changing how we storage guys look at SAN and NAS. In a traditional setup, the SAN or NAS is setup to provision LUNs or mount points to the data storage for VMFS volumes in the VMware environment. It will then be the storage array to provide snapshots, replications, thin provisioning and so on.

Perhaps VMware is nit picking that managing storage arrays for VMFS volumes is difficult. From the VMware administrators view, they are right. They don’t want to know what’s going on below the VM-level. All they want is storage, any kind of storage and VMware will manage the volumes, snapshots, replication and thin  provisioning. Indeed they were already doing that since vStorage API was introduced. In the new release of VMware version 5.0, the ante has been upped even higher, making networked storage less and less significant.

If you want to know about vStorage API and stuff, below is a diagram of the integration of the various components at the VMware API level.

VMware can now use direct, internal storage look like shared storage. The Virtual Storage Appliance (VSA) does just that. VMware already has a thriving market from the community and hobbists for VMware Appliances.

The appliance market has now evolved into new infrastructure too. Using x86 architecture, off-the-shelf infrastructure components (sounds familiar?), companies such as Nutanix and Tintri are taking advantage of this booming trend to introduce specialized VMware appliances as shown in their advertisements on their respective web sites.

Here’s the Nutanix Ad:

Here’s the Tintri Ad:

Both Tintri and Nutanix are a new breed of appliances – specialized appliances for VMware.

At the same time, other applications are building these specialized appliances as well. I have mentioned Oracle Exadata many times in the past and Oracle Exadata is the perfect example an a fine-tuned, hardcore database engine to make the Oracle run at the best performance possible.

Likewise HP has announced their E5000 Messaging System for Microsoft Exchange. The E5000 is a specialized appliance optimized and well-tuned for the Microsoft Exchange Server 2010. From the words of HP,

“HP E5000 Messaging System is the industry’s first fully self-contained platform built for the next-generation of Microsoft Exchange to deliver enterprise-class messaging to businesses of all sizes. Built as a turnkey solution that can be up and running in a few hours vs. days, the HP E5000 Messaging System gives business users the experience they want most: large mailboxes, centralized archiving of mailboxes files and 24×7 access from any device. IT staffs benefit the solutions simplicity to setup, scale and manage and to meet new demands affordably. Ideal for multi-site enterprises as well as branch office and remote office environments, each HP Messaging System delivers greater simplicity and accelerates deployment with preconfigured solutions starting at 500 mailboxes up to 3000 mailboxes, while delivering large, 1 to 2.5GB mailbox sizes. Clients can grow by adding storage capacity or more appliances within the environment up from hundreds to thousands of mailboxes.”

What are the specs of this E5000 box, you say? Here you go:

And look at Row#2 in the table above … Direct, Internal Disks! Look at Row #4, Xeon CPUs! Both Compute and Storage in the same appliance!

While the HP E5000 announcement was recently, Hitachi Data Systems were already in the game early with their Unified Compute Platform and their Converged Platform for Microsoft Exchange with relatively the same idea – specialized appliances.

Perhaps the HDS solutions aren’t exactly direct, internal storage but the concept is still the same – specialized appliance. HDS Unified Compute Platform (UCP) has these components.

HDS Converged Platform for MS Exchange provides their specialized “appliance” with Reference Architectures that can support up to 68,000 Microsoft Exchange mailboxes. Here’s an architecture diagram of their “appliance”

There’s no denying that the networked storage landscape is changing. So are the computing platforms. We are already seeing the compute and storage components being integrated together, tighter than ever. The wave is rising for specialized appliances and it can only get more intense from now on.

No wonder HP’s Converged Infrastructure vision is betting on x86 architecture, simple storage platforms with SAS/SATA disks and Virtualization. Other vendors are doing the same as well – Cisco, NetApp and VMware with their FlexPod solution and EMC with their VBlocks of VMware, Cisco and EMC Storage.

Hail to the Rise of the Specialized Appliance!

Gartner figures about the storage market – Half year report

After the IDC report a couple of weeks back, Gartner released their Worldwide External Controller-Based (ECB) Disk Storage Market report last week. The Gartner reports mirrors the IDC report, which confirms the situation in the storage market, and it’s good news!

Asia Pacific and Latin America are 2 regions which are experiencing tremendous growth, with 27.9% and 22.4% respectively. This means that the demand of storage networking and data management professionals is greater than ever. I have always maintained that it is important for professionals like us to enhance our technical and technology know-how to ride on the storage growth momentum.

So from the report, there are no surprises. Below is a table to summarizes the Gartner report.

As you can see, HP lost market share together with Dell, Fujitsu and Oracle. Oracle is focusing its energies on its Exadata platform (and it’s all about driving more database license sales), and hence their 7000-series is suffering. Despite Fujitsu partnership with NetApp and EMC, and also with its Eternus storage, lost ground as well.

Dell seems to be losing ground too, but that could be the after effects of divorcing EMC after picking up Compellent early this year. Dell should be able to bounce back as there are reports stating that Compellent is picking up a good pace for Dell. One of the reports is here.

The biggest loser of the last quarter is HP. Even though it has a 0.3% of a market drop, things does not seem so rosy as I have been observing their integration of 3PAR since the purchase late last year. No doubt they are firing all cylinders, but 3PAR does not seem to be helping HP to gain market share (yet). The mid-tier has to be addressed as well and having the old-timer EVA at the helm is beginning to show split ends. Good for the hairdresser; not good for HP. IBRIX and LeftHand complete most of HP storage line-up.

HDS is gaining ground as their storage story is beginning to gel quite well. Coupled with some great moves consolidating their services business and also their Deal Operations Center (DOC) in Kuala Lumpur, simplifies the customers doing business with them. Every company has its challenges but I am beginning to see quite a bit of traction from HDS in the local business scene.

IBM also increased market share with a 0.2% jump. Rather tepid overall but I was informed by an IBMer that their DS8000s and XIVs are doing great in the South East Asia Region. Kudos but again IBM still has to transform its mid-tier DS4000/5000 business, which IBM OEMs the storage backend from NetApp Engenio.

EMC and NetApp are the 2 juggernauts. EMC has been king of the hill for many quarters, and I have been always surprised how nimble EMC is, despite being an 800 pound gorilla. NetApp has proven its critics wrong. For many quarters it has been taking market share and that is reflected in the Gartner Half Year Report below:

There you have it folks. The Gartner WW ECB Disk Storage Report. Again, I just want to mention that this is a wonderful opportunity for us doing storage and data management solutions. The demand is there for experienced and skilled professionals but we have to be good, really good to compete with the rest.

EMC and NetApp gaining market share with the latest IDC figures

The IDC 2Q11 global disk storage systems report is out. The good news is data is still growing, and at a tremendous pace as well. Both revenue and capacity have raced ahead with double digit growth, with capacity growth reaching almost 50%.

And not surprisingly to me, EMC and NetApp have gained market share at the expense of HP, IBM and Dell. Here are a couple of statistics tables:

Both EMC and NetApp have recorded more than 25% revenue growth, taking 1st and joint-2nd place respectively. I have always been impressed by both companies.

For EMC, the 800lbs gorilla of the storage market, to be able to get a 26% revenue growth is a massive, massive endorsement of how well EMC execute. They are like a big oil tanker in the rough seas, with the ability to do a 90 degree turn at the blink of an eye. Kudos to Joe Tucci and Pat Gelsinger.

Netapp has always been my “little engine that could”. Their ability to take market share Q-on-Q, Yr-on-Yr is second to none and once again, they did not disappoint. Even with the change of the big man from Dan Warmenhoven to Tom Georgens did not manage a smudge in its armour. And with the purchase of LSI this year, NetApp will go from strength to strength, gaining market share at the other expense. I believe NetApp’s culture plays a big role in their ability and their success. The management has always been honest and frank and there’s a lot of respect of an individual’s ability to contribute. No wonder they are the #5 best company to work for in the US.

The big surprise for me here is Hitachi Data Systems, posting a 23.3% growth. That’s tremendous because HDS has never known to hit such high growth. Perhaps they have finally got the formula right. Their VSP and AMS range must be selling well but again, for HDS, it is a challenge running to 2 different cultural systems within their company. The Japanese team and the US team must be hitting synchronicity at last.

Dell, despite firing all cylinders with EqualLogic and Compellent, actually lost market share. Their partnership with EMC has come to an end and they have not converted their customers to the EqualLogic and Compellent boxes. The Compellent purchase is fairly new (Q1 of 2011) and this will take some time to sink in with their customer. Let’s see how they fare in the next IDC report.

In this table above, HP has always been king of the hill. Bundling their direct attached or internal storage with their servers, just like IBM, has given them an unfair advantage. But for the first time, EMC has outshipped HP, without the presence of DAS and internal storage (which EMC does not sell). Even with the purchase of 3PAR late last year, HP were not able to milk the best of what 3PAR can offer. And not to mention that HP also has LeftHand Networks which now renumbered as the P4000. On the other hand, this is a fantastic result to EMC.

Where’s IBM in all this? Rather anemic, sad to say, compared to EMC and NetApp. IBM’s figures were 1/2 of what EMC and NetApp are posting and this is not good. They don’t have the right weapons to compete. XIV is slowly taking over the mantel of DS8000 as their flagship storage, and their DS series putting up their usual numbers. But that’s not good enough because if you look at the IBM line up, their Shark is pretty much gone. XIV and Storwiz(e) are the only 2 storage platforms that IBM owns. Mind you, Storwiz(e) is not really a primary storage solution. It’s a compression engine. Both the DS-series and N-series actually belongs to LSI (which NetApp owns) and NetApp respectively. So, IBM lacks the IP for storage and in the long run, IBM must do something about it. They must either buy or innovate. They should have bought NetApp when they had the chance in 2002, but today NetApp is becoming an impossible meal to swallow.

We shall see how IBM turns out but if they continue to suffer from anemia, there’s going to be trouble down the road.

As for HP, what can I say? Their XP range is from HDS but with 3PAR in the picture, it looks like the marriage could be ending soon. EVA is an aging platform and they got to refresh it with stronger middle tier platforms. As for the low end of the range, MSA is also something unexciting and I secretly believe that LeftHand should have stepped up. But unfortunately, the HP sales have to be careful not to push MSA and LeftHand side-by-side, and not cannibalizing each other. HP definitely has a challenge in its hands and both 3PAR and LeftHand have been with them for more than 2 quarters. It’s time to execute because the IDC figures have already proved that they are slipping.

What next HP?