June 8, 2010 – The worldwide storage software market grew 7.2 percent in the first quarter of 2010 compared to the same period last year, according to a new report from market research firm IDC.
While growth was steady, reaching revenues of $3 billion, the market experienced a 1.6 percent decrease from the previous quarter, according to the report (“IDC Worldwide Quarterly Storage Software Tracker, June 2010.”)
Market gains can be attributed to weak performance in the first quarter of 2009 as a result of poor economic conditions as well as overall growth from many of the leading vendors, says Laura DuBois, program vice president of storage software at IDC.
Leading vendors contributing to substantial portions of the overall growth included: EMC, which increased 13.7 percent; IBM, up 11 percent; HP, increasing 8.7 percent; NetApp, with positive growth of 8.1 percent; and CA, up 7.2 percent, according to the release. EMC, CommVault, IBM, and HP all enjoyed double digit year-over-year, with EMC and CommVault reporting revenues up 46.6 and 24.9 percent, respectively, for data protection and recovery.
“One thing we are definitely seeing are signs of recovery in the market,” says DuBois. “The conditions in concert with the with these numbers show that overall the storage software market is returning to normal – well, returning to a new normal in terms of growth.”
According to the report, much of the overall growth was due to the release of storage spending following budget freezes in 2009. Expenditures and projects that were postponed or cancelled in late 2008 and 2009 resulted in a backlog of projects that are starting to be switched on again.
On the other hand, DuBois highlights the increasing amounts of being data produced year over year that go unregulated as significantly contributing to market growth. “Because we create more and more data and because we don’t have the tools or policy for deleting data over all, we continue to see a 50 percent growth year over year. And, that has a corresponding effect on spending on storage software.”
Similar growth as a result of the data boom can also be observed in storage device management as well. For example, worldwide external disk storage systems factory revenues posted a year-over-year growth of 17.1 percent, totaling $5.0 billion, in the first quarter of 2010, according to IDC.
Click here to access the full report, “IDC Worldwide Quarterly Storage Software Tracker, June 2010.”
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