Worldwide Storage Software Market Sustains Double-Digit Growth in Second Quarter of 2005, IDC Says

FRAMINGHAM, MA – SEPTEMBER 12, 2005 – The worldwide storage software market continued on its strong growth trajectory in the second quarter of 2005. According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 11.8% year over year to $2.1 billion in 2Q05. This is the seventh consecutive quarter the market has experienced double-digit year-over-year growth.

"The storage software market continues its steady progress and pattern of double-digit growth, driven by customer awareness and concerns about expanding capacity and data protection," said Rhoda Phillips, research manager for IDC Storage Software. "Spending for storage software will continue to account for a greater portion of the business investment required to meet these needs. This spending pattern reinforces IDC's expectation that storage software will post strong year-over-year growth in 2005."

The storage replication market posted the largest gain at 25.1% year-over-year growth in the second quarter, while the back-up and archive and storage resource management software markets continued to represent the largest storage software markets, with each representing one third of the market. The file systems software market once again enjoyed strong results in the second quarter with 19.8% year-over-year growth.

EMC led the overall market with 30.6% revenue share in the second quarter of 2005. VERITAS maintained its second position with 19.8% revenue share, while IBM finished in the third position with 9.7% revenue share, posting a strong result of 18.0% year-over-year growth. HP and Network Appliance rounded out the top 5 in a statistical tie with 6.7% and 6.6% revenue share, respectively. Network Appliance posted the strongest quarterly result among the top 5 vendors, with 49.4% year-over-year growth.

Top 5 Vendors, Worldwide Storage Software Revenue, Second Quarter of 2005

(Revenues are in Millions)

Vendor 2Q05

Revenue Market

Share 2Q04

Revenue Market

Share Revenue Growth

2Q05/2Q04

EMC $657 30.6% $581 30.2% 13.1%

VERITAS $425 19.8% $397 20.6% 7.0%

IBM $209 9.7% $177 9.2% 18.0%

Hewlett-Packard $145 6.7% $136 7.1% 5.9%

Network Appliance $143 6.6% $95 5.0% 49.4%

Others $571 26.6% $535 27.9% 6.7%

All Vendors $2,149 100.0% $1,922 100.0% 11.8%

Source: IDC Worldwide Quarterly Storage Software Tracker, Q205

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.

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