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The facts behind the storage market - with apologies to Michael Dell

I noticed a tweet yesterday from Dell employees that had an image of Michael Dell's keynote from DellWorld. It was an interesting image and it caught my attention because there was something about it that didn't make sense to me.


I want to be clear that what Mr. Dell showed was real data about the storage industry. Dell employees  were sending the image out in a tweet and saying that Dell was "#1 in storage". If you follow the storage industry, Dell isn't number one in storage by any measure.



So how did Dell slice up data to get to this conclusion. It certainly looked like Dell is having great success in the storage market. The data represents the TBs (capacity) of disks shipped, internal to servers and external storage systems. And I know that Mr. Dell told the audience this when presenting the data so I have no concerns about that.




But there's more to this data


The comparison that Mr. Dell used was 2H13 to 1H14 - I don't know if he mentioned this. Using those two timeframes is a biased comparison. The reason is that HP and Dell use different fiscal years and this favors Dell because their fiscal year ends is in H1 where as all the others on the slide fiscal year end is in H2. If we use an unbiased comparison of ByNaHPmIQAAQn63.jpg1H13 to 1H14, the data looks a bit different:  HP grew capacity by 16.5%, Dell grew capacity 3.4%. Far from being number 1 in storage capacity. Dell using the timeframes they did is a bit like comparing apples and oranges.




What does the revenue data show?


I mentioned that the commonly used measure for market success is revenue.  What does that data show?  If we look at the total market of server disks and storage systems, HP was the only vendor of the top 5 that grew share, up .3% while Dell lost 1.2% between 1H14 and 1H13.


Tags: DellWorld
Labels: 3PAR| dell| StoreServ
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