Features - Enterprise Data Insights:

WORLDWIDE STORAGE S/W MARKET GROWS IN Q2 2003

According to IDC's Worldwide Quarterly Storage Software Tracker, the worldwide storage software market grew 7.3 percent sequentially, reaching $1.6 billion in the second quarter of 2003.

The storage replication software market had the largest sequential gain, growing 8.5 percent in the second quarter. Growth in the back-up and archive software market, which is the largest segment in the storage software market, was consistent with the overall market at 7.3 percent sequential growth. The storage resource management market grew less than the overall market with 6.1 percent sequential growth.

"Each segment of the storage software market grew over the first quarter results," said Bill North, research director for Storage Software. "The markets for both storage replication software and backup and archive software are being accelerated by renewed customer emphasis on data protection and disaster recovery, as well as recent record retention and retrieval regulations. Meanwhile, the storage resource management market faces continued budget priority pressures, which accounts for its more modest gains."

Since the fourth quarter of 2002, the rank order among the top 5 storage software vendors has remained unchanged. EMC maintains its lead in the second quarter of 2003 with a 26 percent revenue share, gaining nearly 1.5 percentage point since the first quarter of 2003. Veritas maintained the second position, slightly outpacing the overall market. Computer Associates and IBM tied for the fourth position, while HP followed in the fifth position. EMC and HP were the only two vendors among the top 5 to post double-digit sequential revenue growth, 13.6 percent and 10.0 percent respectively.

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 Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.