SAN FRANCISCO - Organizations are snapping up software to handle their stored data, according to an IDC report released Tuesday that shows more than US$1.5 billion was spent on storage software worldwide in the second quarter, up 7.3 percent from the previous quarter.
The storage replication segment led the sales growth with revenue up 8.5 percent from the first quarter. Software for backing up and archiving data, the largest part of the market, kept pace with the overall market's growth with a 7.3 percent gain. Renewed concern by customers about data protection and disaster recovery, plus recently introduced regulations about record retention and retrieval, helped to drive sales in these two segments, according to an IDC statement. Revenue from sales of storage resource management software grew only 6.1 percent from quarter to quarter.
The top five storage software vendors have remained the same since the last quarter of 2002. In the second quarter, EMC Corp. consolidated its lead as its share of revenue gained about 1.5 percentage points in the quarter to 24 percent, according to IDC. EMC's storage software revenue grew 13.6 percent from the first quarter, to $399 million from $351 million. Veritas Software Corp. slightly outperformed the market but trailed EMC with 21 percent of the market, unchanged from the previous quarter. Computer Associates International Inc., IBM Corp. and Hewlett-Packard Co. rounded out the top five vendors.
Other vendors together had 29 percent of the market with $458 million in revenue, a gain of just 2.2 percent from the previous quarter's revenue.
IDC is a division of International Data Group Inc., the parent company of InfoWorld and IDG News Service.
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