Storage Software Market Expected to Hit $10 Billion in 2005, According to IDC Research

FRAMINGHAM, MA – OCTOBER 1, 2001 – IDC research projects worldwide storage software market revenues to increase at a compound annual growth rate (CAGR) of 14.4%, from $5.47 billion in 2000 to $10.7 billion in 2005. This represents a 96% increase in revenue during the forecast period.


"The quick acceptance and adoption rate of storage software solutions during 2000 can certainly be expected to continue at an accelerated pace over the next five years," said Bill North, research director of IDC’s Storage Software service. "Enterprises will continue to demand more sophisticated software tools to assist in efficient management while corporations will strive for 100% application uptime and data availability. These will both continue to be key factors in market growth."

According to IDC, the following factors will also contribute to the heightened need for overall storage software solutions:

· Increasing use of digital forms of information caused by ecommerce application deployment

· Growing awareness of the need to protect corporate information residing on client desktops and mobile laptops

· A shortage of IT staff trained in SAN management and high availability system, application, and storage management

Of the four storage software submarkets – backup and archive, including hierarchical storage management (HSM); storage resource management; storage replication; and other storage software such as storage utilities – backup and archive software is the largest. Revenues in this segment are expected to increase at a CAGR of 11.8% over the next five years. The fastest-growing segment – storage resource management software – is expected to reach $2.7 billion in 2005 from a previous $1.1 billion in 2000. This represents a 19.5% CAGR over the forecast period.

IDC believes although the backup and archive software market is a mature market, it will continue to have significant innovation. Growth will come from upgrades and enhancements to existing technology rather than from increased market penetration.

IDC also believes the storage resource management market is the most dynamic, with the driving factor being the increased deployment of storage area networks. Growth in this market is attributed to the adoption of more sophisticated resource management tools designed with storage networking in mind.

IDC’s recently published bulletin Storage Software and Submarkets Forecast and Analysis, 2001-2005 (IDC #25074) provides a comprehensive forecast and analysis of the overall storage software market and four submarkets. Estimated vendor revenues worldwide for 2000 and key trends are also included.

IDC will be publishing an update to the forecast for this market, which will examine any effects the events of September 11 may have on the growth of this market in the short term.

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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 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 organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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