Storage Technology Corp. Gains Ground in High-End Computer Storage Market

Strategic Insights -

Storage Technology Corp., a leading provider of high-powered computer data storage devices, has more than doubled its share of the market in 1995. The company's market share for direct access storage devices (DASD) increased to 9.8% from 4.5% in 1994, according to an analysis by International Data Corp. (IDC). This growth is attributed to the company's successful launch of its flagship Iceberg DASD system, which became more fully featured as 1995 progressed, and the subsequent launch of Kodiak, a system aimed at the 20% of the high-end storage market not addressed by Iceberg.

Key Takeaways:

  • Storage Technology Corp. gained a 9.8% share of the worldwide market for direct access storage devices (DASD) in 1995, up from 4.5% in 1994.
  • The company's flagship Iceberg DASD system, launched in 1994, became more fully featured and enhanced in late 1995, allowing it to address a broader segment of the market.
  • StorageTek launched Kodiak, a system aimed at the 20% of the high-end storage market not addressed by Iceberg, in October 1995, which is expected to contribute revenue during the current quarter.
  • The company's market share is expected to grow to 12.5% this year, according to IDC's annual market outlook.
  • StorageTek already owns more than half of the market for tape storage systems.
  • The DASD market is growing rapidly, with worldwide revenue rising 10.5% last year to $4.4 billion.
  • StorageTek faces competition from industry leaders EMC Corp. and IBM, but its rapid gains indicate that its strategy for diversifying into DASD is working.

Statistics:

  • StorageTek's market share for DASD: 4.5% (1994), 9.8% (1995), and expected to reach 12.5% (1996)
  • Worldwide revenue for DASD market: $4.4 billion (1995)
  • Growth rate of DASD market: 10.5% (1995)
  • StorageTek's market share for tape storage systems: more than half

Sources:

  • International Data Corp.
  • A.G. Edwards
  • Billboardion, 1995
  • International Business World, 1996