Storage Software Market Holds onto a Small Increase Sequentially in a Tough Third Quarter, According to IDC

FRAMINGHAM, Mass. – December 7, 2009 – According to IDC’s Worldwide Quarterly Storage Software Tracker, the worldwide storage software market experienced another decline in year-over-year growth in the third quarter of 2009 (3Q09) with revenues of $2.87 billion, representing –7.9% growth over the same quarter one year ago, but a 1.2% growth from the previous quarter (2Q09).

“The storage software market was barely able to maintain a positive sequential growth rate in the third quarter of 2009,” said Michael Margossian, research analyst, Storage Software at IDC. “For the second quarter in a row, only two of the top 5 vendors displayed a positive growth over the previous quarter. EMC and IBM displayed positive growth rates of 5.7%, and 6.9% respectively, while Symantec, NetApp, and CA each had negative growth rates from the previous quarter of –2.1%, –8.9%, and –3% respectively.”

“In the third quarter we saw EMC regain the top spot in the replication market, with 10.7% growth over 2Q09, while NetApp declined 10.1%. Last quarter NetApp made a big push for their fiscal year end, which for the first time made them the market leader, but NetApp has fallen back to second position with 29.5% market share, where EMC has a 32.5% share,” added Margossian. “Two out of the top three vendors in the data protection and recovery market grew sequentially (IBM and EMC) while the leader Symantec declined at 1.2%. Symantec is still the market leader with 31.1% market share, and IBM and EMC having 14.1% and 12.8% market share respectively.”

EMC led the overall market with 23.4% revenue share in the third quarter of 2009. Symantec held onto the second position with 17.8% revenue share, while IBM finished in the third position with 12.2% revenue share. NetApp finished in the fourth position with 7.6% revenue share while CA rounded out the top 5 with 3.9 revenue share.

Top 5 Vendors, Worldwide Storage Software Revenue, Third

Quarter of 2009

(Revenues are in Millions)

Vendor 3Q09Revenue 3Q09MarketShare 3Q08Revenue 3Q08MarketShare 3Q09/3Q08RevenueGrowth

1. EMC $674 23.4% $758 24.3% –11.1%

2. Symantec $513 17.8% $547 17.5% –6.1%

3. IBM $351 12.2% $401 12.8% –12.5%

4. NetApp $220 7.6% $261 8.4% -15.7%

5. CA $113 3.9% $124 4.0% –9.7%

Others $1,005 34.9% $1,032 33.0% –2.6%

All Vendors $2,877 100.0% $3,123 100.0% –7.9%

Source: IDC Worldwide Quarterly Storage Software Tracker, December 2009.

Notes: Starting in Q2 2007, IBM is reported as the combined entity of IBM and Softek.

Taxonomy Note: IDC has updated its storage software taxonomy to reflect changes in the market over the last several years. The storage software taxonomy includes eight functional markets: data protection and recovery, archiving (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.

For more information about IDC's Worldwide Quarterly Storage Software Tracker, please contact Hoang Nguyen at 508-935-4718 or hnguyen@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com[http://www.idc.com].

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