Storage Software Market Slows But Still Shows Growth in the Fourth Quarter of 2008, According to IDC

FRAMINGHAM, Mass. – March 9, 2009 – According to IDC’s Worldwide Quarterly Storage Software Tracker, the worldwide storage software market experienced its 21st consecutive quarter of year-over-year growth in the fourth quarter of 2008 (4Q08) with revenues of $3.03 billion, an 3.6% increase over the same quarter one year ago.

"The storage software market is starting to exhibit more of an impact from the economic trouble," said Michael Margossian, research analyst, Storage Software at IDC. "Even with the usually strong fourth quarter, most vendors showed signs of slowing down, and in some cases declining year over year."

"On a yearly basis, storage-based software showed continuing growth when comparing like quarters year over year. Particularly strong were the Data Protection and Recovery, File System Software, and Archiving segments. However, same year Q3 to Q4 comparisons are negative or neutral reflecting the downward pressure from the worldwide economic crisis," added James Baker, IDC's research manager for Storage Software. "The two largest segments – Data Protection and Recovery Software and Storage Replication Software – dropped just slightly between Q3 and Q4."

EMC led the overall market with 26% revenue share in the fourth quarter of 2008. Symantec held onto the second position with 18.3% revenue share, while IBM finished in the third position with 13.2% revenue share. NetApp finished in the fourth position with 7.5% revenue share while HP and CA rounded out the top 5 with 4.5% and 3.7% revenue share, respectively.

Top 5 Vendors, Worldwide Storage Software Revenue, Fourth

Quarter of 2008

(Revenues are in Millions)

Vendor 4Q08Revenue 4Q08MarketShare 4Q07Revenue 4Q07MarketShare 4Q08/4Q07RevenueGrowth

1. EMC $787 26% $755 25.8% 4.2%

2. Symantec $556 18.3% $520 17.8% 6.9%

3. IBM $401 13.2% $364 12.4% 10.1%

4. NetApp $227 7.5% $241 8.2% -5.7%

5. Hewlett-Packard $135 4.5% $142 4.9% -5.2%

5. CA $111 3.7% $117 4.0% -4.7%

Others $851 26.9% $787 26.9% 3.5%

All Vendors $3,032 100.0% $2,926 100.0% 3.6%

Source: IDC Worldwide Quarterly Storage Software Tracker,

March 2008

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 44 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.

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