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EMC Widens Storage Software Lead

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EMC widened its lead in the storage software market in the second quarter as top competitor Veritas slipped, according to IDC's Worldwide Quarterly Storage Software Tracker.

EMC grew sales 13.1 percent in the quarter, compared to 7 percent growth for Veritas, which was in the process of being acquired by Symantec in a deal that closed July 2.

As a result, EMC widened its market share lead from 30.2 percent to 30.6 percent, while Veritas slipped from a 20.6 percent share to a 19.8 percent share (see table below).

The overall storage software market grew 11.8 percent to $2.15 billion, the seventh consecutive quarter of double-digit growth, according to IDC.

"The storage software market continues its steady progress and pattern of double-digit growth, driven by customer awareness and concerns about expanding capacity and data protection," stated Rhoda Phillips, research manager for IDC Storage Software. "Spending for storage software will continue to account for a greater portion of the business investment required to meet these needs."

The storage replication market posted the strongest growth in the second quarter, with 25.1 percent year-over-year growth, while the backup and archive and storage resource management software markets continued to represent the largest storage software markets at one-third each. File systems software also posted strong growth, expanding at a 19.8 percent year-over-year rate.

Rounding out the top five vendors, IBM came in third with a 9.7 percent revenue share, riding strong 18 percent year-over-year growth. HP saw its market share slip to 6.7 percent on anemic 5.9 percent growth. Network Appliance, meanwhile, continued to do just about everything right, moving into a statistical tie with HP on the strength of 49.4 percent growth.

Top 5 Vendors
Worldwide Storage Software Revenue, Second Quarter 2005

(Revenues are in millions)
VendorQ2 2005
revenue
Market shareQ2 2004
revenue
Market shareRevenue
growth
EMC$65730.6%$58130.2%13.1%
Veritas$42519.8%$39720.6%7.0%
IBM$2099.7%$1779.2%18.0%
Hewlett-Packard$1456.7%$1367.1%5.9%
Network Appliance$1436.6%$955.0%49.4%
Others$57126.6%$53527.9%6.7%
All vendors$2,149100%$1,922100%11.8%
Source: IDC, September 2005

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