SAN JOSE, Calif., March 18, 2002 - While disk array growth stalled in 2001, storage software continued to deliver growth as companies looked to better use the storage hardware installed. Worldwide storage software revenue reached $4.9 billion in 2001, a 3 percent increase over 2000, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
EMC continued its market leadership in 2001, as its worldwide market share grew to 30.4 percent, while its nearest rival, Veritas Software, totaled 19.8 percent (see Table 1). If the $1.6 billion in array-based software were excluded from the analysis, Veritas would be in the lead, and EMC would move to the No. 3 slot behind IBM.
"Six of the top 10 vendors were able to grow software revenue in a very challenging year," said Carolyn DiCenzo, chief analyst for Gartner Dataquest's storage group. "Hitachi Data Systems, which sells its storage array software directly and through Hewlett-Packard and Sun Microsystems, saw 59.4 percent growth and made the top 10 chart for the first time."
Table 1
Top 10 Storage Management Software Vendors for 2001 Based on New License Sales (Millions of Dollars)
|
| Company |
2001 Revenue |
2001 Market Share (%) |
2000 Revenue |
2000 Market Share (%) |
Growth (%) |
| EMC |
1,496.1 |
30.4 |
1,352.7 |
28.3 |
10.6 |
| Veritas Software |
977.3 |
19.8 |
859.4 |
18.0 |
13.7 |
| IBM |
701.2 |
14.2 |
529.8 |
11.1 |
32.4 |
| Computer Associates |
202.9 |
4.1 |
616.0 |
12.9 |
-67.1 |
| Compaq |
198.3 |
4.0 |
142.9 |
3.0 |
38.8 |
| Legato Systems |
142.5 |
2.9 |
139.1 |
2.9 |
2.4 |
| BMC Software |
136.0 |
2.8 |
163.1 |
3.4 |
-16.6 |
| StorageTek |
119.9 |
2.4 |
143.5 |
3.0 |
-16.4 |
| Network Appliance |
108.6 |
2.2 |
112.5 |
2.4 |
-3.5 |
| Hitachi Data Systems |
91.5 |
1.9 |
57.4 |
1.2 |
59.4 |
| Others |
753.9 |
15.3 |
669.2 |
14.1 |
12.7 |
| Total |
4,928.2 |
100.0 |
4,785.6 |
100.0 |
3.0 |
Computer Associates' new revenue reporting model makes its numbers difficult to interpret without a careful reading of their filings. CA now ratably recognizes license revenue over an extended period, which has resulted in substantially lower revenue recognized up front.
"The change in the world economic environment has put more pressure on vendors to provide a clear and compelling market vision that effectively positions the solution against competitive offerings and provides customer references confirming the advantage," DiCenzo said. "The opportunity for software vendors remains strong, but customers will be more careful with expenditures and vendors must bring more value to the table."
Additional information on the storage management software market is available in the Gartner Dataquest Research Brief "Storage Management Software Market Manages Growth." The Research Brief offers a first look at the leaders in the marketplace. More detailed data will follow in upcoming market statistics and market trend reports. To purchase these reports or subscribe to Gartner Dataquest's storage services, please call 408-468-8009 or visit www.gartner.com.
More information on the software and storage industry will be presented at Gartner Symposium/ITxpo 2002, being held April 29-May 2 at San Diego Convention Center in San Diego, California. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look today at the future of IT. For more details or to register for Gartner Symposium/ITxpo 2002, visit www.gartner.com/symposium or call 1-800-778-1997. For more information about exhibiting at ITExpo, please send an e-mail to
Exhibit@gartner.com. Members of the media can register for the event by contacting Tonia Fuller at 212-699-2722 or e-mailing gartnerevents@middleberg.com.
Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.
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