IBM Gaining Ground on Data Storage Firm EMC

EMC Corp., the largest maker of data storage systems, is losing market share to IBM Corp. and other rivals, research company IDC said. Based on revenue, EMC’s share of the market for external storage systems fell to 25.3% this year, from 31.5% last year, IDC said in a preliminary report.

IBM jumped from fourth place, with 6.8% of the market last year, to second place, with 11.6% this year. Compaq Computer Corp. dropped one spot, to third place, though Compaq’s share rose from 10% to 11%.

EMC has been cutting prices on its refrigerator-sized hardware systems to compete with rivals while it attempts to boost sales of more profitable software and services. IDC’s preliminary report doesn’t include software or service revenue.