Storage Station Ziff Davis Enterprise
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Monday, December 10, 2007 5:19 PM/EST

IBM Again Spinning Falsehoods About Storage Market

What is it with IBM? Why is Big Blue so seemingly insecure when it comes to the data storage markets?

IDC came out with its quarterly world market report on storage software earlier today, and the usual suspects EMC, Symantec and IBM are 1-2-3 in world market share. No big news there; that's been the lineup for a couple of years now.

The news in the report was that No. 4 NetApp's storage software revenue had improved a rather significant 31 percent over last year and that, with 10.9 percent of the market, it had inched ever closer to IBM's 12.4 percent. NetApp has gained a full 1.5 percent of the storage software market in 12 months; that, too, is significant.

But IBM could care less. The media relations folks in Armonk, N.Y., have their own view of the facts, and it matters not to them whether there's any resemblance to truth.

The Station got ahold of a press release from IBM regarding the very same report. Here's the actual headline: "Report: IBM Continues as Storage Software Market Leader for Q3 2007."

Um, say again, please? It says right here that EMC is No. 1, Symantec No. 2, and IBM is NUMBER THREE. That headline's nothing but a big fat lie. There's a Commandment against that sort of thing, you know.

Continuing with the IBM spin document: "IBM today announced that a new IDC report indicates the company continued in Q3'07 as the storage software market leader." [Just plain wrong. See headline above.]

"This marks the eleventh consecutive quarter that IBM Storage Software revenue outpaced the storage software market according to IDC." [Based on the lie in the headline and in the lead of this press release, how can anybody believe this next line ... or any other line in this press release?]

"IBM grew storage software revenues 16.5 percent year-over-year, reflecting in 12.4 percent of the total storage software market. Of the top three storage software market share leaders in Q3 '07, IBM had the greatest revenue growth, according to the report."

[Okay, that much is true. But who cares? What about No. 4 (NetApp), which had 31.1 percent growth in the quarter? How convenient to leave that fact out.]

IBM has done this a number of times before. The most blatant scam up to now happened back in June, when the Big Blue propaganda spinners called a Monday morning press conference and tried to use an apples-and-oranges IDC report to proclaim itself king of the storage hardware world.

Read The Station's take on that one at the link above. We don't feel like revisiting that sick stunt here in the blog.

My favorite American journalist of all time, Mark Twain, said and wrote a great many brilliant things. He had seen statistics being twisted for public relations purposes, even way back in the days of the Civil War.

His line still rings with truth today: "Facts are stubborn, but statistics are more pliable."

Then, another Twain line: "Get your facts first, then you can distort them as you please."

Listening, Big Blew-its?

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Comments (10)

Peter :

While I can't say that I have any confidence in Big Blues, line. For them to be lying, based on your argument, you have to assume that IDC is telling the truth. Pointedly say 'assume' because IDC is not adverse to shifting things around to suit whatever the author of the report wants. That holds true of all media journalist, and I for one have less & less confidance in that fact.
And at the end of it all, for such a nebulous thing as 'storage market share' who of us really carries. The reality is the only ones who care about such statements are the corporate MBA's, because they have no actual business talent, and yourselves, because you have to find something to write about.
Bottom line is that the rest of us don't give a .......

editingwhiz :

Believe it: "Market share" is indeed a very important metric to a large number of people -- especially Wall Street, anybody who invests in storage companies, and all the companies who compete for it on a daily basis. There's really no other way to tell how well a company's doing relative to others within a particular sector. That's why we write about newsy market reports; we certainly do not write about every such report that crosses our desks.

As for companies bending the truth and even lying in public statements: It does happen, but not that frequently. When it does, and we catch it -- especially for such a major company as IBM -- the public should know about it. It says volumes about a company's culture. For a company like IBM to think it has to stoop that low is beyond me.

/cp

Amin Adatia :

You wrote "But IBM could care less." Actually should it not be "But IBM couldn't care less"?

editingwhiz :

You are right, according to Kenneth G. Wilson of the "Columbia Guide to Standard American English." I will simply avoid using that line in the future. Thanks for writing and have a great holiday.

/cp

Codexena :

According to Webster's a leader is:

Main Entry:
lead�er
Pronunciation:
\ˈlē-dər\
Function:
noun
Date:
14th century

1: something that leads
2: a person who leads
c (2): a first or principal performer of a group

Therefore, if we say the top 3 are the leaders of the would they not be correct? I know this is all about word play and both companies and the media are experts at this. Well perhaps we could ask the experts at turning words around like a lawyer.

Without looking at all the factors such as reliability, speed, flexibility, cost, and other factors one cannot say one is better than the other in all of these areas. Also what are the placing the leader positions on? Revenue, market share, or Customer base? If based on revenue has there been adjustment based on cost to keep the playing field even? If it is the number of customers are these new or current customer base? Finally, if it is market share what is the market or markets reviewed?

Unless you can answer all of the above with an objective analysis how can one say they are not a leader in one of these above aspects.

But to follow on what Peter stated, most of us do not care besides the cost, ease of implementation, and if the company will be around for the next 5 years. EMC may have the lead on current customers but IBM may have the lead on new customers. I cannot say either way without looking at the reported data by all of the companies involved. None the less something to think about anyways.

Codexena

IntegrationArchitect@hotmail.com :

IBM rebrands NetApp and resells it as an IBM part number with more software features turned on in the IBM hardware/software bundle. The market share number spinning and potential double counting of revenue is a problem on several levels. Dell sells EMC software. There is no clear demarcation line established. What about the market share of how many 'seats' or 'total TB' of storage sold? It is further confusing as EMC & NetAPP separately sell upgrade software like storage multi-pathing licensing software, and IBM & Microsoft typically include this in the enterprise solution. Revenue from services and software maintenance are more valuable because it is repeated every year. The storage hardware refresh occures every 3-5 years. IBM & Microsoft use the honor system and other vendor's disable the storage software after an expiration date, like Symantec.

Storage is hardware to hold data: not software. The storage software is value add to manage, provision, and monitor the hardware and data only. The more interesting numbers would be the storage hardware growth and tracking those trends including yearly delta in TB and seats.

"W" :

You can't spin away the lie. They LIED. First, IDC's report does not have to be true. It could be a complete lie and IBM is still lying. IBM said that "according to the IDC report" which may or may not be true "IBM is the leader in storage software." So whether the report is true or not is irrelevant. They said that according to the report, they were the leader.

As to Codexena and the definition of a leader, they didn't say they were A leader. They said they were THE leader. In any common usage, that means they are in front. They're not in front, so they are LYING.

It's one thing to spin. You emphasize the positive and de-emphasize the negative. You say that the report "demonstrated your continued leadership in the space," or "continues to be one of the market leaders." You don't say you are the leader if you're not.

editingwhiz :

Amen, brother.

/cp

It is sad to see that the IBM PR storage idiots are not accountable to their own company. This is not an isolated instance for their BS. Why are they still employed? Perhaps that department has been outsourced and functions independently?

In my 40+ years in the "mainframe" business, most of the PR people, from most the major players, are completely disconnected from factual reality.

That's why us old guys appreciate blogs like yours!

editingwhiz :

Public image and positioning strategies are far too important for companies to outsource. Most of them have agencies to act as intermediates and handle the media contacting and secretarial work, such as scheduling interviews and emailing press releases written by higher-ups.

IBM's agency, Text 100 in New York City, is a well-functioning operation but does not make strategic image or positioning decisions. The lies and spin originate directly from Armonk, N.Y., IBM's headquarters.

I'm still waiting for a phone call from Mister Chief IBM Imagemaker, and he knows who he is; we've talked before. Received one from Text 100, but not from headquarters. Perhaps no one there wants to -- or cares to -- defend this mischief. Probably because he can't.

Anyway ... thanks for writing, and happy holidays!

/cp

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