EMC (NYSE:EMC) has been the dominant player in the storage systems market in recent years. EMC’s integrated product offerings – with capabilities ranging from content management, data security, virtualization (via VMware) and extensive post-sale services – have helped it gain share in the market. EMC’s market share in the external storage systems market rose from 22.8% in 2009 to about 31.3% in 2014. Correspondingly, the revenue generated by sales of storage systems grew at a CAGR of 17% in the same period to $7.7 billion in 2013.
Subsequently, a slowdown in global expenditures on IT hardware through 2014 and 2015 led EMC’s storage product revenues to fall. Moreover, the presence of small vendors – such as flash storage startups – disrupted the industry by introducing cheaper white-box storage products. Over the last two years, customer preference has shifted to low-cost original design manufacturer (ODM) storage boxes, which has cut into the addressable market for large vendors.  As a result, most large vendors lost share in the storage systems market through 2014 and 2015. This trend is likely to continue over the next couple of years.Have more questions about EMC? See link below:
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- Worldwide Quarterly Disk Storage Systems Tracker Q1 2015, IDC Press Release, June 2015 [↩]