INDUSTRY

HOUSTON, TX -- In an annual report on the worldwide disk storage market released by leading industry analyst firm IDC, Compaq Computer Corporation (NYSE: CPQ) has achieved the number one position in the 2001 global disk storage systems market (internal and external), pushing ahead of EMC in terms of revenue, terabytes sold and units shipped. "In tough economic times, customers are making their buying decisions based on a keen desire to lower costs and maximize return on investment, combined with confidence in the strength of Compaq StorageWorks and the superiority of our overall vision of enterprise storage," said Mark Lewis, vice president and general manager, Compaq Enterprise Storage Group. "In 2001, Compaq StorageWorks introduced a number of products and technologies to the marketplace that essentially reinvented the Enterprise Storage market. These technologies are allowing our customers to do more with storage at a much lower cost. Clearly, customers are examining their options more carefully, and they are voting with their pocketbook. Thanks to their support, Compaq has swept the field in 2001." In the coming months, Lewis sees the current attitude among customers continuing in Compaq's favor with the launch of the revolutionary new StorageWorks Enterprise Virtual Array that features VersaStor(TM) Technology and the introduction of Universal Network Storage that fuses networked attached storage (NAS) with storage area networks (SAN). "Customers continue to adopt StorageWorks products and technologies at a high rate," said Lewis. "In a clear vote of confidence, customers had already ordered more than 250 TB of storage in the new Enterprise Virtual Array (Enterprise) by the time we announced it publicly on October 22. In addition, we have seen record-sized storage management software purchases despite the downturn in the economy. While Compaq is growing market share in 2001, IDC reports that EMC will see a revenue decline of 32.6% and lose more than three points of market share. Their problem is that Compaq is beating them on major deals, pure and simple." According to the IDC comparison of the disk storage giants, Compaq bested EMC in five of six major categories, including highest revenue, most terabytes sold and largest number of units shipped in 2001. IDC forecasts that Compaq will ship 100 petabytes of capacity in 2001, more than two and a half times the capacity forecasted for EMC. Compaq will grow market share while the overall market decreases 18.2 percent, settling at $25.5 billion.