Backup Appliances posted good growth
The purpose built backup appliance (or PBBA) market
International Data Corporation (or IDC) reports EMC (EMC) as the leader of the purpose built backup appliance (or PBBA) market. According to IDC, PBBA is a stand-alone disk-based solution. It utilizes software, disk arrays, server engines or nodes, and data coming from backup applications—like NetWorker, NetBackup, and TSM—to catalog, index, schedule, and perform data movement.
The previous chart shows the market share held by players in the global PBBA market in the first quarter of 2014 (or 1Q14). PBBA revenues stood at $664.5 million in 1Q14. EMC leads the market with a huge market share of 60%. It’s followed by Symantec at a 16% market share. Other players include IBM (IBM), Hewlett-Packard (HPQ), and Barracuda (CUDA).
Revenue growth in the backup appliance market
The above chart shows the revenue growth reported by the leading players in the backup appliance market. Though IBM stands at the third position in terms of market share, its backup appliance posted negative revenue growth. IDC places Symantec as the fastest growing backup appliance player because in the last three years, it had a 0% market share in 2010. Its backup appliance posted 50% revenue growth in 2013.
Backup Appliances yielding results
The company’s focus to grow Backup Appliances seems to have started yielding results, as it posted a 35% year-over-year growth in 1Q15. Capacity of enterprise backup appliance is almost doubled from 76 terabytes to 148 terabytes. This will enable Symantec to target the upper mid-market of the enterprise segment, and Symantec will likely have the potential to double its addressable market.
The integrated backup appliance market
The integrated backup appliance market is expected to dominate PBBA. The backup appliance market is formed of target and integrated backup appliances. Target backup appliances offer deduplication storage for backups and rule the PBBA market.
Symantec’s focus on the integrated backup appliances division
But Symantec focused on the integrated backup appliances division. It reports that its integrated backup appliances division is growing at three times the rate of its target appliance division. Symantec’s growth can be attributed to its integrated backup appliances offering. Integrated backup appliances include reducing server, storage, and software friction across infrastructure life cycles and accelerating time to value.
Symantec seems to be making positive inroads into the backup appliance market. But the PBBA market is experiencing a decline. IDC expects the growth might be resumed in the coming future. It’s to be seen how Symantec will prepare itself for the coming changes in the backup market.