Backup Appliance Market Rises 4% in Q4 2015

By Pedro Hernandez

Enterprises were serious about protecting their data last year, helping storage vendors sell more backup appliances in 2015.

Ending 2015 on a high note, vendors sold $1.05 billion worth of purpose-built backup appliances (PBBAs) during the fourth quarter (Q4) of 2015, a 4.1 percent year-over-year gain, according to new data released today from International Data Corporation's (IDC) Worldwide Quarterly Purpose-Built Backup Appliance Tracker. In total, revenues climbed 2.5 percent in 2015, reaching $3.35 billion.

Last quarter, the market hit a milestone that it had crossed only once before, observed IDC research manager Liz Conner. "Growth in the worldwide PBBA market remained strong in the fourth quarter, hitting the billion-dollar mark for only the second time in any given quarter," she said in a statement.

Enterprises are shunning proprietary hardware in search of more flexible backup solutions. In response, vendors have been approaching the market with a little versatility of their own, according to Conner.

"Despite the continued commoditization of storage hardware, PBBA systems vendors are adapting, putting greater emphasis on backup and deduplication software, meeting recovery objectives, the ability to tier to the cloud, and increased ease of use," she said. "The results are a more flexible and agile product that is helping to meet a wider range of data protection needs."

Those data protection needs are also prompting businesses to snap up more backup storage capacity. In Q4 2015, vendors shipped over an exabyte (1,160 petabytes) of PBBA capacity, a 25.6 percent year-over-year increase. For all of 2015, they shipped 3.3 exabytes, a 23.1 percent increase over 2014.

Total worldwide PBBA capacity shipped for 4Q15 reached 1,160 petabytes, an increase of 25.6% year over year, while annual capacity was up 23.1% to 3.30 exabytes.

EMC remains the backup appliance leader in Q4 with over 67 percent of the market on revenues of over $707.9 million, a 10.6 percent increase compared to the same year-ago period. Symantec, including its Veritas spin-off, took second place with sales of $125.1 billion and a 12-percent share of the market. Rounding out the top five are IBM and HP Enterprise (HPE), statistically tied for third place with over $40 million in sales apiece, and finally, Dell with revenues of $23.6 million and a 2.3 percent share of the market.

With the exception of Dell, the top five for 2015 follow the same order with EMC in the lead. The Hopkinton, Mass. storage giant claimed 61.4 percent of the market last year on sales of just over $2 billion. Fast-growing Barracuda took fifth place on sales of $88.1 million, a 32.6 percent increase compared to 2014.

Pedro Hernandez is a contributing editor at InfoStor. Follow him on Twitter @ecoINSITE.

Photo courtesy of Shutterstock.

This article was originally published on March 23, 2016