Storage software sales surge

Market enjoys double-digit growth in third quarter of 2005

Written by Robert Jaques

The worldwide storage software market enjoyed 10 per cent year-over-year growth to reach $2.1bn in the third quarter of 2005, according to newly published research.

IDC's latest Worldwide Quarterly Storage Software Tracker noted that the third-quarter surge marked eight consecutive quarters of double-digit year-over-year growth.

In the third quarter of 2005, the storage replication market posted the largest gain at 16.8 per cent year-over-year growth, while the back-up and archive market enjoyed 12.7 per cent growth.

The storage resource management and the back-up and archive markets continued to represent the largest storage software markets, each comprising a third of the market.

File systems software once again enjoyed strong results with 15.6 per cent year-over-year growth in the third quarter.

"We see strong demand in the back-up and archive and replication segments driven by fundamental user requirements to protect, recover and retrieve information, not only in the data centre but in remote and branch office locations," said Laura DuBois, research director for storage software at IDC.

"This demand is in response to drivers such as application availability and business continuity, disaster recovery and regulatory compliance."

EMC led the overall market with 29.1 per cent revenue share in the third quarter of 2005. Symantec, with its recent acquisition of Veritas, took the second position with 20 per cent, while IBM finished in the third position with 9.4 per cent, posting strong 12.5 per cent year-over-year growth.

Network Appliance and HP once again rounded out the top five with 6.9 per cent and 6.7 per cent revenue share respectively.

Among the top five vendors, Network Appliance posted the strongest year-over-year growth in the third quarter at 42.5 per cent.

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