IBM External Storage Forecasted to Grow 28% According to IDC Report

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SOMERS, N.Y. - 15 Nov 2001: IBM is forecasted to gain 4.4 points of share in 2001 in the hotly-contested worldwide external disk storage systems, according to a report from independent analyst firm IDC.

IDC's annual report on the storage market entitled, "Worldwide Disk Storage Systems Forecast and Analysis, 2000-2005," predicts that IBM's share of the overall external storage revenue market will increase from 7.8 percent in 2000 to 12.2 percent in 2001. In contrast, the leading competitor is predicted to decline in marketshare during the same time period.

"IBM is benefiting from the focus it has placed on enhancing its Shark Enterprise Storage Server product," said John McArthur, IDC, who acknowledged that IBM was the only top five company forecasted to see growth in external storage systems in 2001.

In nearly every sector of the storage market, from external RAID to SAN, IBM has gained share and is moving up the rankings against its competitors. In the lucrative storage networking market, IBM has made significant gains in both storage area networks (SAN) and network-attached storage (NAS). According to the report, IBM is now ranked second up from fourth place, in total SAN market revenues, with an 18.2 percent share.

In the NAS market, IDC expects IBM's share to grow from 1.3 percent in 2000 to 4.2 percent in 2001, placing it number three in the rankings, up from number seven. This represents significant growth in a short period of time as IBM launched its NAS product line only nine months ago. IDC also predicts that IBM will ship 5 times more terabytes of disk storage systems than the company shipped in 2000.

"IBM launched its Enterprise Storage Server, Shark, just over two years ago and committed to a very simple strategy," said Linda Sanford, senior vice president and group executive, IBM Storage Systems Group. "We build open storage systems that deliver technology innovation and solve customer business problems."

Customers are choosing IBM over its competitors because of its ability to offer better performing products at a lower cost, its focus on open and interoperable storage products, and its ability to deliver the complete IT infrastructure that enables e-business.

For example, Neuberger Berman Inc., a leading New York City-based investment advisory firm purchased a 1.2 terabyte Shark from IBM to support and protect its mission-critical data and transaction processing applications. The Shark is connected to IBM NUMA-Q servers running IBM Informix software (additional attachment to Windows NT and Sun servers is planned) and was chosen by Neuberger Berman for its price, performance and manageability.

"We chose IBM's Shark over competitive offerings because it provides the right combination of price, performance and reliability for our mission-critical transaction processing and data storage operations," said Jack Gittleman, Manager of Information Systems Operations for Neuberger Berman. "IBM was uniquely able to help our IT organization implement an efficiently integrated server, software and storage computing infrastructure."

IBM's storage strategy is focused on leading the industry in openness and interoperability and linking islands of information into storage networks. The company has pumped more than $500 million in the delivery of open storage networks in less than 2 years and now offers a complete lineup of disk and tape products for midrange to enterprise customers for all facets of storage networking including network attached storage, storage area networks and the emerging IP storage.

IBM led all storage vendors with over 400 storage related patents in 2000 and was the recipient of the Year 2000 National Medal of Technology for its contributions to hard disk drive and storage technology. IBM's technology leadership was demonstrated in the development of the emerging protocol for transporting data and information via standard Internet protocols, called iSCSI. This year, IBM became the first vendor to offer an IP storage appliance--the IBM TotalStorage IP Storage 200i--which is designed to deliver many of the benefits of Storage Area Networks to medium-sized businesses, departments, and remote branch office sites.

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