EMC Lengthens Market Share Lead in Networked Information Storage

HOPKINTON, MA -- New independent market share findings and publicly reported results from the first six months of 2001 show that EMC is expanding its lead in the rapidly growing market for networked information storage. Networked information storage (NIS) represents both Storage Area Network (SAN) and Network Attached Storage (NAS) deployments, the leading edge in advanced information infrastructures. These findings confirm EMC's leadership in every major segment of the information storage industry. David Donatelli, EMC's Senior Vice President of Marketing and New Business Development, said, "We expect more than 70% of information storage deployments will be networked within the next 3-4 years. This unmistakable trend is creating huge opportunities for the many EMC customers who have embraced the value of unprecedented access and consolidation of their information assets. As more and more information is stored and managed in these SAN and NAS environments, customers will continue to need fewer general-purpose servers." In a report to be released next month detailing actual 2000 results for SAN deployments, Gartner Dataquest will find EMC added to its #1 position in SAN revenue in 2000, capturing 38.8% of the worldwide market. Overall, the worldwide SAN market grew to $4.84 billion in 2000, Gartner Dataquest will report. "We believe EMC has extended its lead during the first half of 2001, with SAN revenue growing 49% compared with the first half of 2000, to nearly $1.3 billion," said Donatelli. "It is also clear that EMC is now the world's #1 NAS supplier, based on 2001 results reported to date," said Donatelli. As reported with EMC's first- and second-quarter financial results, EMC revenue for NAS deployments was $562 million during the first half of 2001, nearly triple the level of the first half of 2000. According to Gartner Dataquest, EMC captured 36.3% of the $1.4 billion NAS market in 2000 (in "enterprise-level" NAS, EMC was #1 last year with 48.4% market share). EMC is the only storage provider with a major presence in both the SAN and NAS markets. No other vendor exceeded 2% market share in both the NAS and SAN markets in 2000. Roger Cox, Chief Analyst at Gartner Dataquest, said, "Networked external disk storage represents a strategic acquisition that is required to support the competitive health of an organization. As the industry continues to move to the fabric-attached, information-centric model, vendors will increasingly find that offering a spectrum of networked solutions to customers will not be an option, but a requirement." As the leader in NIS (also referred to by Gartner Dataquest as "Fabric Attached Storage"), EMC provides the connectivity options, guaranteed and tested interoperability, and centralized management of the enterprise information infrastructure - delivering both the independent and integrated SAN, NAS, and optical (DWDM) solutions -- that customers require. "Networked information storage is about getting information from where it is to where it needs to be - regardless of connectivity, distance, or format," Donatelli commented. "EMC delivers best-of-breed networked information solutions for any customer environment, with by far the greatest degree of open interoperability available today. The extent of our market share lead is proof that leading-edge organizations around the world understand the value of choosing EMC for the management of their most important information assets." Earlier this year Gartner Dataquest reported that EMC was the world leader in revenue market share for both information storage systems and software in 2000. EMC was the #1 supplier in the total external RAID storage systems market (with a market share exceeding the combined shares of the next four vendors) and led in the four largest server operating system market segments: Sun Solaris, WindowsNT/2000, HP UX and OS/390. Last year EMC also grew its #1 market share lead in storage management software by nearly six points, outpacing the next closest software competitor by more than nine percentage points. For more information visit www.EMC.com