The worldwide storage software market experienced its 12th consecutive quarter of year-over-year growth in the third quarter of 2006 with revenues of $2.5 billion, a 10.7 percent increase over the same quarter one year ago. According to IDC's Worldwide Quarterly Storage Software Tracker, storage replication was once again a major factor driving the sector's growth.

"The market for storage software has performed very well over the past three years with the replication and archiving segments providing a lot of momentum," said Rhoda Phillips, research manager for Storage Software at IDC. "IDC expects this trend to continue as companies focus on data retention requirements and business continuity needs, as well as storage consolidation and migration issues."

Storage replication, one of the largest storage software markets, demonstrated year-over-year growth of 22.5 percent in 3Q06. Meanwhile, the smaller but fast-growing archive and hierarchical storage management (HSM) market posted a 30.8 percent year-over-year growth rate.

EMC led the overall market this quarter with 28.5 percent revenue share in the third quarter of 2006. Symantec took the second position with 17.6 percent revenue share, while IBM finished in the third position with 12..3 percent revenue share. Network Appliance finished in the fourth position with 9.4 percent revenue share. Again, CA and HP rounded out the top 5 in a statistical tie with 5.3 percent and 4.9 percent revenue share, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Third Quarter of 2006  Source: IDC Worldwide Quarterly Storage Software Tracker, December 11, 2006

(Revenues are in Millions)

Vendor

3Q06 Revenue

Market Share

3Q05 Revenue

Market Share

Revenue Growth 3Q06/3Q05

EMC

$699

28.5%

$633

28.6%

10.3%

Symantec

$433

17.6%

$427

19.2%

1.4%

IBM

$301

12.3%

$216

9.7%

39.1%

Network Appliance

$231

9.4%

$143

6.5%

61.1%

CA

$130

5.3%

$125

5.6%

4.0%

Hewlett-Packard

$119

4.9%

$143

6.4%

-16.5%

Others

$543

22.1%

$531

23.9%

2.2%

All Vendors

$2,454

100.0%

$2,218

100.0%

10.7%

Note: Symantec is reported as the combined entity of Symantec and VERITAS prior to 3Q05 and includes KVS revenue starting with 3Q05.

Taxonomy Note: IDC has updated its storage software taxonomy to reflect changes in the market over the last several years. For 2006, the storage software taxonomy includes eight functional markets: data protection and recovery, archive and hierarchical storage management (HSM) (including email archiving), storage replication, storage management, storage device management, storage infrastructure, file system and "other."

IDC's Worldwide Quarterly Storage Software Tracker is a quantitative tool for analyzing the global storage software market. This Tracker counts new license and maintenance revenues quarterly and provides data segmentations by vendor, submarket, functional product family, and region. It further characterizes the storage resource management (SRM) and storage replication markets by the execution location of the software within the host, fabric, appliance or storage system.

For more information about this product, please contact Hey-Sung Han at (508) 935-4026 or hshan@idc.com.

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