Another Quarter of Double-Digit Growth for the Worldwide Storage Software Market, According to IDC

FRAMINGHAM, MA – JUNE 12, 2006 – According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 10.2% year over year to $2.4 billion in the first quarter of 2006, marking ten consecutive quarters of double-digit year-over-year growth.

"The storage software market has maintained a steady pace of growth driven by increased attention to data protection and business continuance planning," said Rhoda Phillips, research manager for IDC storage software. "Businesses are concerned about their expanding information storage requirements and will continue to make investments to meet these needs."

In the first quarter of 2006, the storage replication market demonstrated a 15.2% year-over-year growth. In addition the smaller but fast-growing archive and HSM market posted a 30.2% year-over-year growth.

EMC led the overall market this quarter with 25.4% revenue share in the first quarter of 2006. Symantec took the second position with 20.1% revenue share, while IBM finished in the third position with 12.6% revenue share. Network Appliance finished in the fourth position with 7.6% revenue share. Computer Associates and HP rounded out the top 5 in a statistical tie with 5.5% and 5.4% revenue share, respectively. Three out of the top 5 vendors (IBM, Computer Associates, and Network Appliance) posted robust results with more than 30% year-over-year revenue growth each.

Top 5 Vendors, Worldwide Storage Software Revenue, First Quarter of 2006

(Revenues are in Millions)

Vendor 1Q06 Revenue Market Share 1Q05 Revenue Market Share Revenue Growth 1Q06/1Q05

EMC $605 25.4% $629 29.2% -3.9%

Symantec $478 20.1% $455 21.1% 5.0%

IBM $299 12.6% $212 9.8% 41.3%

Network Appliance $181 7.6% $137 6.3% 32.0%

Computer Associates $132 5.5% $99 4.6% 33.6%

Hewlett-Packard $129 5.4% $132 6.1% -1.9%

Others $555 23.3% $495 22.9% 12.2%

All Vendors $2,379 100.0% $2,158 100.0% 10.2%

Note: Symantec is reported as the combined entity of Symantec and VERITAS prior to 3Q05 and includes KVS revenue starting with 3Q05.

Source: IDC Worldwide Quarterly Storage Software Tracker, June 12, 2006

IDC has updated its storage software taxonomy to reflect changes in the market over the last several years. For 2006, the storage software taxonomy includes eight functional markets: data protection and recovery, archive and hierarchical storage management (HSM) (including email archiving), storage replication, storage management, storage device management, storage infrastructure, file system, and "other".

IDC's Worldwide Quarterly Storage Software Tracker is a quantitative tool for analyzing the global storage software market. This Tracker counts new license and maintenance revenues quarterly and provides data segmentations by vendor, submarket, functional product family, and region. It further characterizes the storage resource management (SRM) and storage replication markets by the execution location of the software within the host, fabric, appliance or storage system.

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