Data Storage Software Sales Hang On

The market for data storage hardware may be suffering through its first slump in more than five years, but the market for storage software is hanging on — barely.

EMC (NYSE: EMC), Symantec (NASDAQ: SYMC) and IBM (NYSE: IBM) managed to grow their storage software sales in the fourth quarter, IDC reported today, while NetApp (NASDAQ: NTAP), HP (NYSE: HPQ) and CA (NYSE: CA) suffered modest sales declines.

Overall, the data storage software market grew for the 21st straight quarter to end 2008, but like the hardware side of the business, vendors have had to contend with a sharp slowdown from the double-digit growth rates enjoyed in recent years. The storage software market grew just 3.6 percent year-over-year to $3.03 billion in the fourth quarter, IDC reported.

EMC once again held onto the top spot in the overall market, with a 26 percent revenue share and 4.2 percent revenue growth. Symantec (NASDAQ: SYMC) was once again second, with an 18.3 percent market share and a 6.9 percent growth rate.

IBM had the strongest quarter of the top vendors, growing sales 10.1 percent and coming in third with 13.2 percent of the market. NetApp came in fourth at a 7.5 percent share, while HP and CA took 4.5 percent and 3.7 percent of the market, respectively. NetApp, HP and CA each saw a sales decline of about 5 percent in the quarter.

Data protection and recovery, file system software and archiving were the strongest segments of the market, according to IDC.

But while year-over-year comparisons are holding up, the market was flat from the third quarter to the fourth quarter, and the two largest segments — data protection and recovery software and storage replication software — dipped slightly between the third and fourth quarters.

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

Back to Enterprise Storage Forum

Paul Shread
Paul Shread
eSecurity Editor Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.

Latest Articles

Storage Software Q&A With Chris Schin of HPE

Storage software technology continues to undergo rapid shifts. As enterprises' data needs multiply, storage providers have scaled their software products, so customers can optimize...

What Is Virtual Memory? Ultimate Guide on How It Works

Virtual Memory allows a computer more memory than physically available. Learn how it works & how it differs from physical memory. Click here now.

What is Blob Storage? Definition, Types, & How It Works

Microsoft Azure Blob Storage makes stored data available to businesses over the internet. While data can be of any type, blob storage is particularly...