Storage software market up again in Q3, IDC says

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Dec 12, 20052 mins

EMC leads the industry with 30 percent of the storage software market

Demand for storage software products continues to grow, with revenue up 10 percent in the third quarter, marking eight consecutive quarters of double-digit year-over-year growth, according to data published Monday by IDC in its Worldwide Quarterly Storage Tracker.

Revenue grew to $2.1 billion in the third quarter of 2005, with the market for storage replication software posting the largest gain from a year earlier, with 16.8 percent growth. The back-up and archive market also showed strong demand, with revenue up 12.7 percent.

Products for storage resource management, along with back-up and archiving software, remained the storage software industry’s largest segments, with each accounting for a third of the total, IDC said.

EMC led the industry with revenue of $621 million, or 29.1 percent of the market. Symantec secured the No. 2 position, following its acquisition of Veritas Software, with 20 percent of total revenue. IBM came third at 9.4 percent, with revenue of $201 million.

Network Appliance landed in fourth position, with 6.9 percent of revenue, slightly ahead of Hewlett-Packard  with 6.7 percent.

Of the top five vendors, Network Appliance posted the strongest year-over-year growth in the third quarter, at 42.5 percent.

IDC’s figures track new license and maintenance revenue.

(IDC is a division of International Data Group, the parent company of the IDG News Service.)