Storage Software Market

IDC
The global storage software market recorded its 13th straight quarter of year-over-year growth in the fourth quarter of 2006 with revenues of $2.6 billion, a 3.1% increase over the same quarter one year ago. For the full year 2006, storage software revenues totaled $9.8 billion, growing 8.3% year over year.

Storage software continues to show good year-over-year performance because of the growth in the archiving, replication and file system software markets as well as an increase in demand for storage management software. Over the last 18 months, firms have adopted solutions that can improve availability, recovery and information access across heterogeneous environments, which has contributed to the growth in storage software.”

According to IDC, storage replication was once again a major factor driving the sector’s growth. Storage replication, one of the largest storage software markets, demonstrated year-over-year growth of 14.4% in 4Q06. Meanwhile, the smaller but fast-growing Archive and HSM (Hierarchical Storage Management) market posted a 25.5% year-over-year growth rate.

EMC led the overall market this quarter with 27.9% revenue share in the fourth quarter of 2006. Symantec took the second position with 18% revenue share, while IBM finished in the third position with 12.1% revenue share. Network Appliance finished in the fourth position with 9.6% revenue share. Again, CA and HP rounded out the top 5 in a statistical tie with 5.0% and 5.4% revenue share, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Fourth Quarter of 2006
(Revenues are in Millions)

Vendor 4Q06 Revenue Market Share 4Q05 Revenue Market Share 4Q06/4Q05 Revenue Growth
EMC $716 27.9% $703 28.2% 1.8%
Symantec $461 18.0% $487 19.5% -5.3%
IBM $312 12.1% $283 11.3% 10.3%
Network Appliance $246 9.6% $164 6.6% 49.3 %
Hewlett-Packard $138 5.4% $159 6.4% -13.5%
CA $128 5.0% $129 5.2% -1.1%
Others $567 22.1% $565 22.7% 0.5%
All Vendors $2,567 100.0% $2,491 100.0% 3.1%
Source: IDC Worldwide Quarterly Storage Software Tracker, March 2007

Top 5 Vendors, Worldwide Storage Software Revenue, Full Year 2006
(Revenues are in Millions)

Vendor 2006 Revenue Market Share 2005 Revenue Market Share 2006/2005 Revenue Growth
EMC $2,673 27.4% $2,641 29.3% 1.2%
Symantec $1,840 18.8% $1840 20.4% 0.0%
IBM $1,209 12.4% $943 10.5% 28.2%
Network Appliance $879 9.0% $585 6.5% 50.1 %
CA $529 5.4% $461 5.1% 14.9%
Hewlett-Packard $519 5.3% $578 6.4% -10.3%
Others $2,123 21.7% $1,974 21.9% 7.5%
All Vendors $9,772 100.0% $9,023 100.0% 8.3%
Source: IDC Worldwide Quarterly Storage Software Tracker, March 2007

IDC 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.

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