Storage Replication Drives Worldwide Storage Software Market to Another Solid Quarter of Growth, According to IDC

FRAMINGHAM, MA – SEPTEMBER 11, 2006 – According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 8.6% year-over-year to $2.5 billion in the second quarter of 2006, marking eleven consecutive quarters of year-over-year growth.

"With customers buying and installing record amounts of storage hardware capacity, the need for storage software has never been greater," said Rhoda Phillips, research manager for IDC storage software. "Among the larger sub-segments, the storage replication market has shown consistently strong growth over the past several quarters and is expected to continue growing for the next several years."

In the second quarter, the storage replication segment demonstrated 13.2% year-over-year growth. In addition, the smaller but fast-growing archive and hierarchical storage management (HSM) market posted 32.0% year-over-year growth.

"Buyers are particularly interested in replication software to help ensure that their disaster recovery and business continuity plans are viable, in planning for recovery from any unwelcome and unpredictable events that might occur," Phillips noted.

EMC led the overall market in the second quarter with 26.4% revenue share. Symantec took the number 2 position with 18.9% revenue share, while IBM finished third overall with 12.5% revenue share. Network Appliance finished in the number 4 position with 9.0% revenue share. HP and CA rounded out the top 5 in a statistical tie with 5.7% and 5.6% revenue share, respectively. Three out of the top 5 vendors (Network Appliance, IBM, and CA) posted robust results for the quarter with more than 25% year-over-year revenue growth each.

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

(Revenues are in Millions)

Vendor 2Q06 Revenue Market Share 2Q05 Revenue Market Share Revenue Growth 2Q06/2Q05

EMC $654 26.4% $675 29.6% -3.2%

Symantec $468 18.9% $477 20.9% -1.8%

IBM $311 12.5% $230 10.1% 34.9%

Network Appliance $222 9.0% $141 6.2% 57.5%

Hewlett-Packard $141 5.7% $144 6.3% -2.7%

CA $140 5.6% $108 4.7% 29.5%

Others $543 21.9% $506 22.2% 7.2%

All Vendors $2,477 100.0% $2,282 100.0% 8.6%

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,

September 2006

Taxonomy Note: 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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