IBM External Disk Storage Systems Outpaces Growth of Storage Market, According to Leading Research Firm

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ARMONK, NY - 02 Jun 2006: IBM today announced that it beat EMC, HP and Hitachi in external disk storage systems in year-over-year worldwide revenue growth for the first quarter of 2006, according to data released by IDC [1]. With worldwide year-over-year revenue growth in external disk storage systems of 14.8% for the quarter, IBM easily outpaced the overall marketplace, which grew by a strong 10.3%.

IBM delivered strong year-over-year revenue growth in North America in the first quarter of 2006 with 64% growth, beating all major vendors tracked by IDC for the report, including EMC, HP, Dell, Hitachi, NetApp and Sun. IBM also grew its revenue in the worldwide networked disk storage systems market (NAS plus Open SAN) with year-over-year revenue growth for the quarter of 22.6%.

"For the fifth quarter in a row, IBM has exceeded the growth rate of the external disk storage systems market by delivering innovative storage solutions that help our customers manage their information on demand requirements," said Barry Rudolph, IBM vice president, storage systems. IBM has the broadest storage product line, including world leading virtualization, which helped drive excellent growth across the product portfolio."

IBM continues to extend its leadership in storage in many areas. The company recently announced that it had demonstrated a world record in data density on linear magnetic tape by 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. Last week, IBM announced breakthrough enhancements to its storage virtualization engine software -- IBM® System Storage™ SAN Volume Controller 4.1 -- that are designed to extend its reach to greater distances, greater speeds and a greater number of platforms, while this week, IBM announced the latest additions to the IBM System Storage N series line of NAS offerings. Also in May, IBM announced that the IBM Federated Records Management solution and IBM System Storage DR550 were named AIIM's "Best of Show" in the records management and hardware storage categories.

IBM's external disk storage offerings are a key component of its Information of Demand strategy that is helping clients integrate their business processes to better address core functional and business requirements.

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1 [1] Source: IDC's Worldwide Quarterly Disk Storage Systems Tracker Q1 2006.