Australian Market for Non-Backup Software is Booming,According to IDC

SYDNEY – JUNE 11, 2002 – Latest research from IDC has noted a 41% increase year on year in the Australian storage software market in 2001 despite tough local economic and IT market conditions. In addition, the worldwide economic slump, the shelving of a number of enterprise application implementations and other IT projects that traditionally drive storage adoption, as well as the tragic events of September 11 all composed a variegated market of drivers and inhibitors of storage purchasing.

Even so, the market grew 37% from US$31 million in the first half of 2001 to US$43 million in the later half. The strongest market size increases were noted in storage resource management software and other storage software, which grew at 27% and 109% respectively (2000-2001 CAGR).

There are a number of reasons why we?ve seen this trend so specifically in Australia and other countries with mature IT industries, said Grace Lai, Market Analyst, Infrastructure Software, IDC Asia/Pacific. Companies have begun to manage their business-critical storage investments in a more strategic fashion. Storage resource management software lays the foundation to create a strategic solution with which to manage and deploy a range of storage resources in order to make the best use of increasingly limited resources. Many companies continue to battle the email bulge. In particular, large corporations that installed enterprise applications systems have found them to be significant and rapid consumers of storage.

Across Asia/Pacific, the storage management software market has attracted a significant amount of interest with recent worldwide events and local governments encouraging businesses to invest in disaster recovery solutions. There is a uniform sustained interest in storage management software solutions, but expectedly growth rates are lower in countries such as Australia and Singapore, where purchasing of storage capacity and management software have been integrated into normal business IT practices and budgets over the years.

The spectrum of storage software can be graded from basic to more strategic purchases, in which lion-share spending on Backup and Archive functionality often the entry point marks the start of the Storage software purchasing cycle. Currently constituting 46% of the Australian market, Backup and Archive software is expected to increase its portion of the market as more Australian companies increase their storage hardware capacity and actively protect their knowledge resources.

Australia corporations, both as outposts of US firms and local heroes of tenable sizes, realized from the tragic events of September 11 how unexpectedly their business operations could be affected. They were either encouraged by their headquarters or independently sought to redress their disaster recovery solutions, many of which had not been revised since the last disaster recovery situation, Y2K, Ms. Lai elaborated.

Key trends for the recovery market beyond 2002 include: storage management software purchasing continuing as capacity unit prices drop, the need to house more data for competitive analysis and business operations and medium-sized organizations driving new business.

For smaller and medium-sized corporations, we're seeing a growing hope that they can find cost-effective, manageable solutions that scale to their particular needs,? explained Ms. Lai. They have often resorted to DAS and NAS solutions for a lower entry to cost, but rarely had the access to management capabilities and the necessary services to ensure the most effective use of such solutions. Hence, the continuing growth in Australian storage software market should be pushed along by the increasing availability of point solutions targeted to the medium enterprise market.

These results have been generated from the April 2002 release of the Asia/Pacific Infrastructure Management Software Tracker (IMT). IDC has been tracking the market and vendor movements for Systems management, Network management and Storage management software across six strategic country markets: Australia, China, India, Korea, Taiwan and Singapore. The first of its kind, IMT monitors the performance of Infrastructure Management Software vendors and provides IDC's opinion on pertinent trends, market practices and events in the infrastructure management space.

About IDC:

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at