Servers Storage Market Slowdown

Storage Market Slowdown

The storage market slowed in the second quarter from its strong growth rate, but will likely pick up again in the second half of the year, according to a report by Robert W. Baird & Co.
The storage market slowed in the second quarter, according to a Wall Street research report. Are Intel and AMD to blame?

Baird’s latest enterprise value added reseller (VAR) survey found a “modestly weak demand environment” for the second quarter, but the pipeline bodes well for the third and fourth quarters, according to Baird analysts Daniel Renouard, Frank Timons and Joel Inman.

One factor contributing to the weaker than normal second quarter — and the bright second-half forecast — is the price war between Intel and AMD, which the analysts said is pushing demand into the third quarter from the second quarter. Half of the VARs believed that the forthcoming aggressive pricing pushed out demand in the quarter.

The analysts said the survey’s findings were most positive for HP, which had by far its best scores since the Compaq merger. Also faring well was EMC, which bested weak expectations in the quarter. VARs also see a strong second half for EMC.

Network Appliance and IBM also received high marks in the survey. The analysts said NetApp should continue to deliver 25 percent  growth for the next few years. IBM, meanwhile, gained much of its momentum in the quarter from server sales.

The survey was also positive on component vendors Emulex, QLogic, Brocade and McData, while Sun and Dell continued to face challenges. Dell may have been hurt by a lack of AMD-based offerings, while Sun is seeing some renewed interest.

The survey, which looked at 59 VARs around the globe accounting for $10 billion in annual sales, found that 95% of VARs viewed the second quarter as on or below plan, results the analyst said “appear slightly below typical seasonal softness.” But most vendors expects a strong second half.

This article originally appeared on

Latest Posts

How to Convert a Physical Computer to a Virtual Machine

Many organizations are implementing virtualization technology into their networks to convert physical computers to virtual machines (VM). This helps reduce overall physical hardware costs,...

HPE ProLiant DL380 Gen10: Rack Server Overview and Insight

The HPE ProLiant DL380 series has consistently been a market leader in the server space. The Gen10 released in 2017 further increased HPE's market...

Best Server Management Software & Tools 2021

Finding the best server management software tools for your organization can have a major impact on the success of your business operations. Manually handling...

IBM AS/400: Lasting the Test of Time

Some server operating systems (OS) were built to survive the test of time – the IBM AS/400 is one such system.  The AS/400 (Application System/400)...

What is Disaster Recovery?

The modern organization's heavy dependence on using data to drive their business has made having a Disaster Recovery (DR) plan in place a necessity....

Related Stories