Worldwide Storage Software Market Still Going Strong with Double-Digit Growth in the Fourth Quarter and Full Year 2005, IDC Says

FRAMINGHAM, MA – MARCH 13, 2006 – According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 11.2% year over year to $2.4 billion in the fourth quarter of 2005, marking nine consecutive quarters of double-digit year-over-year growth. For the full year 2005, storage software revenues totaled $8.9 billion, injecting nearly one billion dollars of new revenue into the marketplace and growing 12.6% year over year.

In the fourth quarter of 2005, the storage replication market posted the largest gain at 21.7% year-over-year growth, while the back-up and archive and storage resource management software markets continued to represent the largest storage software markets, each representing a third of the market, respectively.

"The storage software market continues to exhibit steady growth, particularly in the replication and backup and archive segments, driven by customer requirements of trying to protect and secure information in an increasingly complex IT environment," said Rhoda Phillips, research manager for IDC Storage Software. "This demand is in response to the growth of information and the impact of the requirements to have more information online with greater protection throughout the entire business cycle."

EMC led the overall market this quarter with 29.2% revenue share in the fourth quarter of 2005. Symantec took the second position with 19.7% revenue share, while IBM finished in the third position with 11.5% revenue share, posting a strong result of 32.6% year-over-year growth. Network Appliance and HP once again rounded the top 5 in a statistical tie with 6.7% and 6.5% revenue share, respectively. Network Appliance and IBM posted the strongest year-over-year revenue growth among the top 5 vendors, with 41.3% and 32.6% year-over-year growth, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Fourth Quarter

of 2005

(Revenues are in Millions)

Vendor 4Q05 Revenue Market Share 4Q04 Revenue Market Share Growth 4Q05/4Q04

EMC $714 29.2% $674 30.7% 5.8%

Symantec $481 19.7% $461 21.0% 4.4%

IBM $280 11.5% $211 9.6% 32.6%

Network Appliance $164 6.7% $116 5.3% 41.2%

Hewlett-

Packard $159 6.5% $150 6.8% 6.1%

Others $647 26.4% $587 26.7% 10.3%

All Vendors $2,446 100.0% $2,200 100.0% 11.2%

Note: Symantec is reported as the combined entity of Symantec and

VERITAS prior to 3Q05.

Source: IDC Worldwide Quarterly Storage Software Tracker, Q405

Full Year Results for Storage Software Market

For the full year, EMC maintained its lead in the storage software market with 29.7% revenue share, followed by Symantec and IBM with 20.3% and 10.5% revenue share, respectively. Network Appliance and HP rounded out the top 5 in a statistical tie with 6.6% and 6.5%, respectively. Among the top 5 vendors, Network Appliance and IBM posted the strongest year-over-year revenue growth during 2005, with 45.4% and 26.8% growth, respectively.

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

2005

(Revenues are in Millions)

Vendor 2005 Revenue Market Share 2004 Revenue Market Share Growth 2005/2004

EMC $2,635 29.7% $2,371 30.1% 11.2%

Symantec $1,798 20.3% $1,680 21.3% 7.1%

IBM $934 10.5% $737 9.4% 26.8%

Network Appliance $585 6.6% $402 5.1% 45.4%

Hewlett-

Packard $578 6.5% $552 7.0% 4.8%

Others $2,336 26.3% $2,133 27.1% 9.5%

All Vendors $8,867 100.0% $7,874 100.0% 12.6%

Note: Symantec is reported as the combined entity of Symantec and

VERITAS prior to 3Q05.

Source: IDC Worldwide Quarterly Storage Software Tracker, Q405

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.

For more information about this product, please contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

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