Gartner Says Worldwide Storage Management Software Industry Grows 12 Percent in 2004
Analysts to Examine the Future of the Storage Industry During the Gartner PlanetStorage Summit, June 13-16 in Orlando, Florida
STAMFORD, Conn., April 22, 2005 — Driven by strong sales in storage resource management, worldwide storage management software revenue increased 12.3 percent in 2004, according to Gartner, Inc. The storage management software market totaled $5.6 billion in new license revenue, up from $5 billion in 2003.
The storage resource management (SRM) segment grew 30.8 percent to reach $612 million in 2004. This segment includes products that monitor and manage the capacity and performance across multiple storage and server platforms.
"Storage resource management was the second smallest segment in 2004, but it is expected to continue to record fast growth as enterprises look to better manage storage capacity utilization and begin to automate some of the management functions," said Carolyn DiCenzo, research vice president at Gartner. "For some companies, the need to manage IT as a utility with service-level agreements between IT and the business units is also driving new requirements and increased interest in SRM."
EMC, Veritas, IBM, and Computer Associates remained the top four vendors based on new license storage software revenue in 2004. Network Appliance showed the strongest growth of the top ten vendors, as it moved from the No. 7 position in 2003 to No. 5 in 2004 (see Table 1).
Table 1
2004 Storage Software Market Leaders - All Software, All Platforms, New License Revenue Only
Vendor
2003 Revenue
2003 Market Share (%)
2004 Revenue
2004 Market Share (%)
2003-2004 Change (%)
EMC
1,370.6
27.4
1,661.1
29.5
21.2
Veritas
929.3
18.6
1,038.1
18.5
11.7
IBM
616.0
12.3
688.1
12.2
11.7
Computer Associates
327.8
6.5
296.7
5.3
-9.5
Network Appliance
169.0
3.4
293.2
5.2
73.5
Hewlett-Packard
279.4
5.6
271.5
4.8
-2.8
Hitachi/HDS
234.8
4.7
256.2
4.5
9.1
StorageTek
114.4
2.3
104.5
1.9
-8.7
Symantec
98.4
2.0
88.9
1.6
-9.7
BMC Software
78.6
1.6
84.2
1.5
7.1
Others
789.5
15.6
842.9
15.0
6.8
Total
5,007.8
100.0
5,625.4
100.0
12.3
Source: Gartner Dataquest (April 2005)
The worldwide storage management software market is poised for double-digit growth in 2005, with worldwide new license revenue projected to reach $6.3 billion, a 12 percent increase from 2004.
Compliance requirements will drive archiving and data protection growth. Gartner analysts said vendors will try to leverage the focus on compliance by claiming that their products are compliance solutions.
"The need to better incorporate electronic records into a total records management solution will offer real opportunity for storage vendors, but customers will need to look beyond the hype to determine exactly how a specific storage product will fit into their process," Ms. DiCenzo said. "Storage vendors will play a significant part in providing some of the tools needed to do Information Life Cycle Management (ILM) but understanding the content will be a key component that will take more than just storage tools."
Additional information on the industry is available in the Gartner reports "2004 Storage Management Software Market Share" and "Storage Management Software Forecasts: 2005-2009." The reports provide detailed market share statistics, as well as the long-term outlook for the industry. The reports are available on Gartner's Web site at www.gartner.com.
Gartner analysts will examine the state of the storage industry during the 21st annual Gartner PlanetStorage Summit, June 13-16 at the Hyatt Regency Grand Cypress in Orlando, Florida. Gartner analysts will provide comprehensive coverage of the entire storage spectrum including: storage resource management; storage infrastructure design and cost justification; security and disaster recovery; storage technology road maps; and emerging disk storage architectures. Additional information is available at www.gartner.com/us/storage.
Members of the media can register for the PlanetStorage Summit by contacting Wanda Whitson at 408-468-8312 or wanda.whitson@gartner.com.
About Gartner:
Gartner, Inc. is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,100 research analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
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