IDC Finds Data Protection and Recovery As Well as Replication Software Demand Driving Storage Software Market

FRAMINGHAM, MA – June 9, 2008 – According to IDC’s Worldwide Quarterly Storage Software Tracker, the worldwide storage software market experienced its 18th consecutive quarter of year-over-year growth in the first quarter of 2008 with revenues of $2.9 billion, a 9.4% increase over the same quarter one year ago.

“Overall market growth was 9.4% year-over-year with the Data Protection and Recovery and Storage Replication software markets being the primary drivers. Three out of the top five vendors in the Data Protection and Recovery Software market posted double-digit growth rates, and in the Storage Replication software market the top four suppliers posted double-digit growth rates,” noted Michael Margossian, research analyst, Storage Software at IDC. “The first quarter of the calendar year can be slow for some vendors, but the market showed relatively strong growth from a year ago.”

"The storage software market continues to see solid growth with firms investing in software to help facilitate management, access to and protection, retention and recovery of increasing volumes of storage capacity. Leading indicators for continued growth in the storage software market include compressing recovery times, tighter SLAs, the need to improve resource utilization, and ongoing regulatory and discovery pressures. While meeting these escalating business needs, firms need to manage increasing storage capacities while at once reducing data center space, power and cooling requirements," added Laura DuBois, program director for Storage Software.

EMC led the overall market with 24.9% revenue share in the first quarter of 2008. Symantec took the second position with 17.9% revenue share, while IBM finished in the third position with 12.8% revenue share. NetApp finished in the fourth position with 8.5% revenue share while HP and CA round out the top 5 in a statistical tie with 4.4% revenue share each.

Top 5 Vendors, Worldwide Storage Software Revenue, First Quarter of 2008

(Revenues are in Millions)

Vendor 1Q08 Revenue 1Q08 Market Share 1Q07 Revenue 1Q07 Market Share 1Q08/1Q07 Revenue Growth

1. EMC $715 24.9% $674 25.6% 6.1%

2. Symantec $516 17.9% $465 17.7% 11.0%

3. IBM $370 12.8% $337 12.8% 9.8%

4. NetApp $245 8.5% $202 7.7% 21.0%

5. Hewlett-Packard $127 4.4% $117 4.4% 8.9%

5. CA $126 4.4% $119 4.5% 6.2%

Others $780 27.1% $718 27.3% 8.6%

All Vendors $2,879 100.0% $2,632 100.0% 9.4%

Source: IDC Worldwide Quarterly Storage Software Tracker, June 2008

Notes: Starting in Q2 2007, IBM is reported as the combined entity of IBM and Softek.

Taxonomy Note: IDC has updated its storage software taxonomy to reflect changes in the market over the last several years. 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.

For more information about this product, please contact Hoang Nguyen at hnguyen@idc.com.

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