Storage Software Revenues Post Seventh Consecutive Quarter of Growth: IDC

By Nathan Eddy  |  Print this article Print

Among vendors, EMC, Symantec and IBM were the top-ranking storage software suppliers.

The storage software market experienced its seventh consecutive quarter of year-over-year growth during the second quarter of 2011 (2Q11), according to the IT research firm International Data Corporation (IDC) and the company’s Worldwide Storage Software QView. The total market value approached $3.4 billion during the quarter, up 11.3 percent over the same period last year. The report noted that this double-digit growth broadly aligned with increased investments made within the server and disk storage systems markets during the same quarter, which the research said was an indication that storage software sales benefited from "expansive" investments made within the infrastructure space.

Five of the seven functional markets covered within the Worldwide Storage Software Qview grew at double-digit or high single-digit rates during the quarter, with storage infrastructure software and storage and device management software experiencing the strongest gains with 22.6 percent and 17.3 percent year-over-year growth respectively. Data protection and recovery software sales accounted for 34.2 percent of market value and were the largest contributor to incremental revenue for the quarter compared to one year ago, according to fingures released by IDC.

Among vendors, EMC, Symantec, and IBM were the top ranking storage software suppliers with 24.5 percent, 15.8 percent and 14.1 percent market shares respectively. All suppliers covered within the Qview experienced year-over-year increases in storage software sales, suggesting demand for storage software was far reaching and went well beyond simple product refresh cycles.

EMC posted Q2 revenue of $827 million, up from $722 million in 2010, while Symantec posted revenues of $533 in Q2 2011. IBM followed with $477 million in revenue. NetApp placed fourth in market share with 8.9 percent and $298 million in revenue, while Hitachi and HP tied for fifth place with market share of 4.4 percent and 3.9 percent, respectively (IDC declares a statistical tie in the worldwide storage software market when there is less than one percent difference in the revenues of two or more vendors).

"The far-reaching and double-digit storage software market growth was driven by quite a few factors," said Marshall Amaldas, senior research analyst with IDC's storage software program. "New product introductions, simplified pricing and bundling, ongoing modernization of data protection processes, a need to improve management of storage within virtual environments, and desire to mitigate against legal and IT risks were all important contributors to growth. The fact that all of this is occurring during times of elevated economic uncertainty makes the market growth even more impressive"

IDC also noted it has updated its storage software taxonomy to reflect changes in the market over the last several years. The storage software taxonomy now includes seven functional markets: data protection and recovery, archiving, storage replication, storage and device management, storage infrastructure, file system, and "other".