Irreverence

posted on 15 May 2008 20:05

A Sun blogger thought that the combined storage revenues of HP and EDS would over-take those of EMC. Such is very unlikely to happen.

IDC's Brad Nisbett supplied IDC storage revenue figures for Q4 calendar 07 as follows:-

1, EMC - $1,200 million
2. IBM - $945 million
3. HP- $645 million
4. Dell - $449 million
10. NEC - $28 million

EDS did not appear in the top ten and was not individually tracked by IDC. In effect EDS is a reseller of storage systems and doesn't supply its own storage. It probably resells EMC kit, HP kit and other storage suppliers' product as project needs dictate.

Logically then HP plus EDS won't equal more than HP on its own and, in my view, hasn't a prayer of even matching EMC in storage revenues let alone over-taking it. EMC is currently making almost twice HP's storage revenues and the EDS acquisition won't put any dent in that relationship at all, at first.

Eventually an HP-owned EDS could reduce its sales of EMC storage and increase sales of HP storage and then the EMC lead over HP might shrink.

^{[Chris Mellor.]}