Report: IBM No. 1 in Storage Services

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ARMONK, NY - 18 Sep 2002: -- IBM was the leading provider of storage services in 2001 and is gaining share as a provider of storage management software according to two recently released reports from Gartner Dataquest.

Storage services and storage software are widely noted as key areas of growth for storage providers moving into the future.

The research report, "Leaders Emerge in Storage Services Market," states that IBM is by far the market share leader among hardware and software vendors and identified IBM's outsourcing services as key to the leadership position.

IBM Global Services holds a 15 percent share, followed by the closest competitors with about 4 percent each. The world wide revenue for storage services is estimated by Gartner Dataquest to be $27 billion in 2001 and to grow to $40 billion by 2005.

The report also predicts that IBM will maintain its revenue leadership in 2003 because of the increasing importance of storage services to its strong outsourcing and managed hosting businesses.

"As customers shift to storage networking, they require an integrated solution of hardware, software and services -- this is IBM's strength as an end-to-end storage provider," said Robert Samson, IBM Storage Systems Vice President of Sales. "The combined power of IBM's Storage Systems Group, Tivoli, IBM Research, and IBM Global Services allows us to deliver integrated infrastructure solutions that deliver a competitive advantage."

According to the Gartner report, IBM "maintains its leadership position across all geographies" with No. 1 rankings in the Americas ($1.8 billion) to the closest competitor ($640 million); No. 1 in Europe ($1.32 billion) to the closest competitor ($350 million); and No. 1 in Asia/Pacific ($840 million) to the closest competitor ($599 million). In total, Gartner estimated that IBM Storage Services revenues reached $4 billion in 2001.

In a separate report on storage management software (1), IBM made significant gains in the storage infrastructure category, which accounts for nearly 44 percent of storage software revenue. IBM's gains in this category, which includes data replication technologies such as IBM's FlashCopy and Peer to Peer Remote Copy, are attributed to the first full year of availability of the software on the IBM TotalStorage Enterprise Storage Server. According to the report, IBM's nearest competitor in the storage infrastructure category has been steadily declining due to growth in competitor's products.

IBM also gained share in data management and continued to lead in hierarchal storage management through its Tivoli software products.

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