Strong Demand Sustains Worldwide Growth for Storage Software Market, According to IDC

FRAMINGHAM, MA – DECEMBER 11, 2006 – The worldwide storage software market experienced its 12th consecutive quarter of year-over-year growth in the third quarter of 2006 with revenues of $2.5 billion, a 10.7% increase over the same quarter one year ago. According to IDC's Worldwide Quarterly Storage Software Tracker, storage replication was once again a major factor driving the sector's growth.

"The market for storage software has performed very well over the past three years with the replication and archiving segments providing a lot of momentum," said Rhoda Phillips, research manager for Storage Software at IDC. "IDC expects this trend to continue as companies focus on data retention requirements and business continuity needs, as well as storage consolidation and migration issues."

Storage replication, one of the largest storage software markets, demonstrated year-over-year growth of 22.5% in 3Q06. Meanwhile, the smaller but fast-growing archive and hierarchical storage management (HSM) market posted a 30.8% year-over-year growth rate.

EMC led the overall market this quarter with 28.5% revenue share in the third quarter of 2006. Symantec took the second position with 17.6% revenue share, while IBM finished in the third position with 12..3% revenue share. Network Appliance finished in the fourth position with 9.4% revenue share. Again, CA and HP rounded out the top 5 in a statistical tie with 5.3% and 4.9% revenue share, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Third Quarter of


(Revenues are in Millions)

Vendor 3Q06 Revenue Market Share 3Q05 Revenue Market Share Revenue Growth 3Q06/3Q05

EMC $699 28.5% $633 28.6% 10.3%

Symantec $433 17.6% $427 19.2% 1.4%

IBM $301 12.3% $216 9.7% 39.1%

Network Appliance $231 9.4% $143 6.5% 61.1%

CA $130 5.3% $125 5.6% 4.0%

Hewlett-Packard $119 4.9% $143 6.4% -16.5%

Others $543 22.1% $531 23.9% 2.2%

All Vendors $2,454 100.0% $2,218 100.0% 10.7%

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, December 11, 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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