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Storage software market shows signs of life; NetApp has strong quarter

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RESEARCH TRIANGLE PARK, N.C. – Led by a 20 percent surge in growth by NetApp (Nasdaq: NTAP), storage software sales grew by five percent in the second quarter, according to analysis firm IDC.

Among the top five storage vendors, only NetApp increased revenues from a year ago to $241 million from $239 million. As a result, NetApp improved its market share by nearly one full percentage point to 8.5 percent.

IBM (NYSE: IBM) and EMC (NYSE: EMC)) lost market share compared to a year ago as revenues fell.

All three firms have a major presence in the Triangle.

The storage sales data is good news for NetApp. which recently lost out to EMC in a bidding war to acquire Data Domain. Last month, Tom Georgens took over as president and CEO, replacing long-time leader Dan Warmenhoven.

However, the storage market’s revenues of $2.8 billion were nearly 10 percent less than a year ago.

"The storage software market is slowly starting to recover with positive growth over the first quarter of 2009," said Michael Margossian, research analyst for storage software at IDC.

NetApp has been “refocusing its efforts” in its improving sales, Margossian added.

EMC is No. 1 at market share (22.4 percent, down from 23.6 percent a year ago) followed by:

• Symantec 18.5% (down 0.2%)
• IBM 11.5% (down 0.7%)
• NetApp 8.5% (up 0.9%)
• CA 4.1% (down 0.2%)

In specific sectors of the market, data protection/recovery grew up 3 percent. Device management and the archiving software markets also grew, IDC says.

For the full details from IDC, click here.

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