EMC storms back to lead table

IBM and NetApp also gain ground in storage software market

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By  Published  December 23, 2006

EMC extended its lead over second place Symantec at the top of the storage software market during Q3 with worldwide revenue growth of over 10% year-on-year, according to IDC. The rise in sales was a strong recovery for the storage giant following a poor quarter in Q2 that saw its revenue and market share drop 3.2% from the same period last year, the figures revealed. Despite the boost in sales to US$699million in Q3, EMC’s grip on the market continued to loosen. The vendor’s market share slipped again year-on-year, albeit only slightly, due to the strong performance of third- and fourth-placed IBM and Network Appliance (NetApp). However, EMC still controls well over a quarter of the entire market worldwide. For IBM and NetApp, Q3 was yet another quarter of impressive growth following an incre- ase in sales of 34.9% and 57.5% year-on-year in Q2. During Q3, Big Blue’s sales shot up 39.1% to US$301million, increasing its market share to 12.3%, and NetApp did even better with revenue growth of 61% to US$231m, taking its share of the market to almost 10%. In contract, Symantec was unable to bounce back from a disappointing Q2 in which its sales shrunk 1.8% year-on-year. The vendor was only able to muster a meagre 1.4% increase in revenue to US$433million compared to the same period in 2005. Its poor performance meant the storage and security software specialist lost around 1.6% in market share during Q3. The worst performance in the quarter was from HP. Delivering in almost all other areas of its expansive product line-up, the technology giant saw itself overtaken by CA as revenue slumped 16.5% year-on-year to US$119million. CA now holds fifth spot in IDC’s ranking after posting revenue of US$130million, an increase of 4% compared to the same period last year. Overall the storage software market grew just over 10% during Q3 to around US$2.5 billion. IDC said growth in the market was being fuelled by the demand for replication and archiving software. “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,” explained Rhoda Phillips, research manager for storage software at IDC.

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