Storage software revenues up 8.6%

Posted on September 15, 2006

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—According to figures released this week by International Data Corp. (IDC), the overall storage software market grew 8.6% in the second quarter of this year versus the same period last year, but three of the top five vendors suffered revenue drops. EMC's software revenues slid 3.2% (although the company maintained its number-one spot with a 26.4% market share on revenues of $654 billion), Symantec slipped 1.8% and Hewlett-Packard dropped 2.7% in terms of year-over-year revenues (see table below).

The storage software market was buoyed by strong performances by IBM (up 34.9%), Network Appliance (up 57.5%) and CA (up 29.5%).

Revenues for all types of storage software were almost $2.5 billion in the second quarter.

IDC research manager Rhoda Phillips notes that replication software has been one of the fastest growing segments of the overall market, driven in large part by users' increased emphasis on disaster recovery and business continuity. For example, revenues from replication software were up 13.2% in the second quarter. Although a smaller segment of the market compared to replication, the archive and hierarchical storage management (HSM) segment grew an impressive 32% in Q2.

IDC recently revised its taxonomy for the storage software market, breaking it out into eight categories: data protection and recovery, archive and HSM (including e-mail archiving), replication, storage management, device management, storage infrastructure, file systems, and "other."



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