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March 06, 2009

Comments

Chuck Hollis

Hi, this is Chuck

Before I get the inevitable question of "what do you think of the Gartner numbers?" the answer is that -- in my personal opinion only -- IDC puts far more effort into their work. We use the IDC numbers for our internal planning here, as an example -- not the Gartner numbers.

Thanks!

-- Chuck

Geoff Mitchell

Chuck,

Not sure how much you can share on a public forum, but I would be interested to hear what you have to say about EMC's performance.

The IDC numbers look great for EMC - and congratulations on this consistent level of success in the market both on market share AND for recognition of product quality. As we know, market share means you're the biggest, not necessarily the best, so the Fortune accolade is well earned.

One correction, however - HP appears to have grown faster than EMC, albeit off a base hald the size http://seekingalpha.com/article/124570-overall-storage-revenue-slips-but-emc-remains-on-top?source=yahoo

Diving a little deeper, IDC states that high-end storage sales stalled and the impact was felt more heavily than mid and lower tiers. If that's the case, why did EMC take such a large impact to its earnings per share? Aren't the mid-tiers more profitable than the high end gear, which largely drives the top line revenue?

Chuck Hollis

Hi Geoff -- thanks for the comment.

I should have explained the HP statement -- if you backed out their LeftHand acquisition, it would have looked flattish to down. But, you're right, they did show as growing in 2008, albeit less than the market as a result of this acquisition.

Also, you have to get the full IDC report to get the real picture. The article you referenced, for example, just looks at the category 'external disk', which is a larger category than 'external RAID', which in turn a larger category than 'networked storage', and so on.

As the categories get more narrow, the amount of value add (and potential margin) get greater. Most of us in the industry tend to focus on the value-added categories, rather than the undifferentiated ones. To each their own.

I have no idea, for example, if IDC accounted for the Iomega business that EMC now owns, which one could argue is "external disk", no?

And, as far as your speculation as to cause-and-effect, I'll leave that up to our Investor Relations group.

Personally, though, I disagree with your logic.

Thanks for writing!

-- Chuck

KPC

Hi Chuck,

Congrats on being rated No#1 by IDC on Marketshare.

For SAN, EMC will be definitely No #1.
For NAS/ISCSI ... ????

I think IDC has some serious discrepancies on how they count NAS/ISCSI marketshare. Gartner is no joker to ignore.

Also the EMC worry is on news like this
http://finance.yahoo.com/news/US-alleges-EMC-paid-kickbacks-apf-14529847.html

Hope its not true !

- KPC

Dave Vellante

Its early March and IDC has its numbers out from the previous year. That's good work.

Try reconciling factory data, the channel, customer spending by a zillion different technologies, operating systems countries, etc...and make it all add up.

It's enough to drive you from the business :-)

The comments to this entry are closed.

Chuck Hollis


  • Chuck Hollis
    SVP, Oracle Converged Infrastructure Systems
    @chuckhollis

    Chuck now works for Oracle, and is now deeply embroiled in IT infrastructure.

    Previously, he was with VMware for 2 years, and EMC for 18 years before that, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    Chuck lives in Vero Beach, FL with his wife and four dogs when he's not traveling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not ever buy him a drink when there is a piano nearby.

    Note: these are my personal views, and aren't reviewed or approved by my employer.
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