Worldwide Storage Software Market Posts Record Revenue of More Than $2 Billion in the Fourth Quarter of 2004, IDC Says

FRAMINGHAM, MA – MARCH 14, 2005 – According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 15% year-over-year to $2.2 billion in the fourth quarter of 2004. For the full year 2004, storage software revenue grew 16.1% year over year to $7.9 billion, injecting more than a billion dollars of new revenue into the marketplace.

"The storage software market ended on a very positive note, continuing its momentum of double-digit growth. This pattern is fueled by the increased business investment in data protection and management, as well as a greater awareness of compliance requirements," said Bill North, research director for Storage Software at IDC.

In the fourth quarter of 2004, the storage resource management market posted the largest gain at 19.7% year-over-year growth, while the back-up and archive software market continued to represent the largest functional market, growing 9.5% year over year. The storage replication software and file system software markets also enjoyed strong results in the fourth quarter with 17.2% and 14.2% year-over-year growth, respectively.

"The strong growth rate for storage resource management is a result of the need to manage the increasing scale and complexity of storage systems as well as the heterogeneous storage environment," added North. "As traditional point-in-time backup and storage replication move closer together, these combined markets have contributed to the market's healthy growth in 2004. IDC expects the overall market to continue in this direction over the next few years."

EMC (the combined results of EMC and Legato) led the overall market this quarter with 31.7% revenue share, gaining the greatest year-over-year market share among the top 5 vendors. VERITAS maintained its second position with 21.7% revenue share, growing 11.4% year-over-year. Computer Associates and IBM finished in a statistical tie for the third position, with 8.8% and 8.2% revenue share, respectively. HP rounded out the top 5 with 6.6% revenue share for the quarter. EMC and IBM posted the strongest quarterly results among the top 5 vendors, with 25.1% and 16.7% year-over-year growth, respectively.

For the full year 2004, EMC led the overall market with 30.9% revenue share, followed by VERITAS with 21.9% revenue share.

Top 5 Vendors, Worldwide Storage Software Revenue, Fourth Quarter of 2004

(Revenues are in Millions)

Vendor 4Q04 Revenue Market Share 4Q03 Revenue Market Share Revenue Growth 4Q04/4Q03

EMC(a) $ 693 31.7% $ 554 29.1% 25.1%

VERITAS $ 475 21.7% $ 427 22.4% 11.4%

Computer Associates $ 193 8.8% $ 174 9.1% 11.1%

IBM $ 180 8.2% $ 154 8.1% 16.7%

Hewlett-Packard $ 143 6.6% $ 137 7.2% 4.7%

Others $ 501 22.9% $ 455 24.0% 10.0%

All Vendors $2,185 100.0% $1,901 100.0% 15.0%

(a) EMC figures reflect the combined results of EMC and Legato.

Source: IDC Worldwide Quarterly Storage Software Tracker, Q404

Top 5 Vendors, Worldwide Storage Software Revenue, Full Year of 2004

(Revenues are in Millions)

Vendor 2004 Revenue Market Share 2003 Revenue Market Share Revenue Growth 2004/2003

EMC(a) $2,437 30.9% $1,921 28.3% 26.9%

VERITAS $1,730 21.9% $1,474 21.7% 17.3%

Computer Associates $ 659 8.4% $ 585 8.6% 12.7%

IBM $ 617 7.8% $ 565 8.3% 9.1%

Hewlett-Packard $ 527 6.7% $ 468 6.9% 12.5%

Others $1,922 24.4% $1,784 26.2% 7.8%

All Vendors $7,892 100.0% $6,797 100.0% 16.1%

(a) EMC figures reflect the combined results of EMC and Legato.

Source: IDC Worldwide Quarterly Storage Software Tracker, Q404

Taxonomy Note: IDC has updated its storage software taxonomy to include the file system software market. In previously published information, the file system software market was reported under the "Serverware" software market.

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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