IDC Finds Strong Demand for Archive and HSM Storage Software Driving Overall Storage Software Growth in the Second Quarter of 2007

FRAMINGHAM, MA. – September 10, 2007 – According to IDC’s Worldwide Quarterly Storage Software Tracker, the worldwide storage software market experienced its 15th consecutive quarter of year-over-year growth in the second quarter of 2007 with revenues of $2.8 billion, a 10.4% increase over the same quarter one year ago.

“Customer demand for products that manage and protect information more efficiently and cost effectively continue to drive the need for storage software,” said Rhoda Phillips, research manager, Storage Software at IDC. "In particular, businesses are faced with increased regulatory compliance, litigation, and e-discovery requirements as demonstrated by the fast-growing archive and hierarchical storage management (HSM) market which posted a 14.9% year-over-year growth.”

“Buyers are also interested in products that reduce risk, ensure data availability, and simplify complex IT infrastructures, all key business factors that will sustain the momentum in the storage software market,” Phillips noted.

EMC led the overall market this quarter with 24.6% revenue share in the second quarter of 2007. Symantec took the second position with 17.5% revenue share, while IBM finished in the third position with 13.0% revenue share. Network Appliance finished in the fourth position with 10.7% revenue share. Again, HP and CA rounded out the top 5 in a statistical tie both with 4.7% and 4.6% revenue share, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Second

Quarter of 2007

(Revenues are in Millions)

Vendor 2Q07 Revenue Market Share 2Q06 Revenue Market Share 2Q07/2Q06 Revenue Growth

1. EMC $685 24.6% $654 26.0% 4.8%

2. Symantec $488 17.5% $455 18.1% 7.1%

3. IBM (a) $362 13.0% $304 12.1% 19.0%

4. Network Appliance $298 10.7% $222 8.8% 34.2%

5. Hewlett-Packard $130 4.7% $133 5.3% -1.9%

5. CA $129 4.6% $123 4.9% 5.1%

Other $688 24.8% $626 24.9% 9.8%

All Vendors $2,779 100.0% $2,517 100.0% 10.4%

(a) Note: Starting in Q2 2007, IBM is reported as the combined

entity of IMB and Softek.

Source: IDC Worldwide Quarterly Storage Software Tracker,

September 2007

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.

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