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Vulnerable Veritas

The merger of Symantec Corp. (Nasdaq: SYMC)
with Veritas Software Corp. (Nasdaq: VRTS) may be just the break Veritass rivals have been waiting for.

According to IDC, Veritas holds 40.4 percent of the backup and archiving market. While it's maintained a solid lead despite some slip-ups in recent years, industry sources think the competition will have a good chance to make up ground while Symantec integrates Veritas after forking over $13.5 billion in stock (see Symantec & Veritas: It's a Deal).

“There will be about a year of uncertainty that all of Veritas's competitors will attempt to leverage,” says a consultant who asked to remain unidentified. “I expect EMC and CommVault to get the most market share gains out of it. But in the end, the market share moves should be marginal.”

Marginally or not, EMC Corp. (NYSE: EMC) and privately held CommVault Systems Inc. are certainly looking to gain. You can bet BakBone Software Inc. (Toronto: BKB), Computer Associates International Inc. (CA) (NYSE: CA), and IBM Corp. (NYSE: IBM)
are as well.

Have your doubts? Consider what an EMC spokesman has to say: “Mergers are disruptive. They always create FUD in the marketplace and among employees. [Veritas and Symantec] may both be software companies, but they have to integrate completely different sales organizations.”

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