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Customers pay billions for storage software in Q3

EMC and Veritas cash in

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The storage software market continues to thrive with customers spending $1.9bn on applications during the third quarter, according to market researcher IDC.

The storage software makers enjoyed a 19 per cent year-over-year revenue surge. That kind of double-digit growth has become the norm in the storage industry with customers looking to pick up all kinds of sophisticated management packages. Customers are now spending $36 on software for every $100 they spend on storage hardware, IDC said.

The hottest part of the data protection racket continues to be SRM (storage resource management) software. SRM sales jumped 27 per cent, while the more traditional back-up and archive segment rose 17 per cent year-over-year. The replication and file system markets jumped 14 per cent and 10 per cent, respectively.

EMC - with Legato's help - is the dominant storage software vendor. It brought in $608m during the third quarter and holds 32 percent of the market. Veritas owns the second spot with $415m in sales and 22 percent of the market. CA is third with $169m in sales and 9 percent of the market, HP follows with $146m in sales and 8 percent of the market, and IBM rounds out the top five with $136m in sales and 7 percent of the market.

During the third quarter, HP and CA showed the strongest growth rates. ®

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