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IDC: Storage Software Still Zippy: Page 2 of 3

As companies decide to prioritize securing their data, however, it would appear that they’re under-prioritizing other areas. On the other side of the spectrum, IDC reports that storage resource management (SRM) software lagged behind the overall market, only growing 6.1 percent quarter over quarter.

So who’s benefiting from all this growth? IDC says that the rank and file of leading storage software vendors has remained the same, with EMC Corp. (NYSE: EMC) securely in the lead with 26 percent share, followed by Veritas Software Corp. (Nasdaq: VRTS) (21 percent), Computer Associates International Inc. (CA) (NYSE: CA) (9 percent), IBM Corp. (NYSE: IBM) (9 percent), and finally Hewlett-Packard Co. (NYSE: HPQ) (7 percent).

Table 1: Top 5 Vendors, Worldwide Storage Software Revenue, Second Quarter 2003 (Revenues are in Millions)

Vendor Q2 2003 Revenue Market Share Q1 2003 Revenue Market Share Sequential Revenue Growth Q2/Q1
EMC $399 26% $351 24% 13.6%
Veritas $323 21% $300 21% 7.6%
Computer Associates $142 9% $139 10% 1.8%
IBM $134 9% $125 9% 7.8%
Hewlett-Packard $107 7% $98 7% 10.0%
Others $458 29% $444 31% 2.2%
All Vendors $1,563 100.0% $1,457 100.0% 7.3%
Source: IDC, September 2003

While each of the top five vendors saw their share increase over the quarter, the report shows that some certainly gained more ground than others. Only the top vendor, EMC, and the last company on the list, HP, managed to increase their revenues in double-digit percentage-points, with 13.6 percent and 10 percent respectively (see IDC: EMC Widens Software Lead). CA’s revenues improved the least over the quarter, only growing 1.8 percent. The remaining market grew 2.2 percent during the quarter.

“We really outpaced not only the industry but certainly also the other major players,” says EMC spokesman Greg Eden. “Our strategy of providing both flexible, open software, as well as our platform-specific software, is bearing fruit.”