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IDC: Storage Software Surges

With customers apparently more focused on protecting data than managing it, replication software sales fueled a strong growth in storage software in the second quarter, according to IDCs
latest market research (see IDC Sees Market Growth ).

Overall, the storage software market totaled $2.15 billion for the quarter -- up 3.7 percent from $2.07 billion in the previous quarter and 11.8 percent from $1.92 billion in the same quarter last year.

"The storage software market continues its steady progress and pattern of double-digit growth,” says IDC analyst Rhoda Phillips. “This spending pattern reinforces IDC's expectation that storage software will post strong year-over-year growth in 2005."

Although storage resource management (SRM) remains the largest of the four storage software segments tracked by the firm, replication revenue spiked the most, followed by backup and archiving. Replication revenue grew $42 million from the previous quarter, compared to $22 million for backup/archive, and $14 million for SRM. File system software remained the smallest segment, and decreased $2 million from the previous quarter.

Replication revenue grew more than twice as much as the overall storage software market, both year-on-year and sequentially -- increasing 25.1 percent from last year and 9 percent from the previous quarter to total $509 million.

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