Symantec’s information management operating segment
Symantec’s (SYMC) information management operating segment comprises of backup like NetBackup, recovery, and data archiving products. In the first quarter of 2015 (1Q15), this segment contributed 37% of the total revenues.
The previous chart shows the market share held by different players in the backup product market. Google (GOOGL) Drive leads the market at 22%. Microsoft (MSFT) SkyDrive and Apple (AAPL) iCloud hold a 15% and 10% market share, respectively. Symantec, with its Norton 360 Online Backup, held a 5% market share.
Discontinued Backup Exec cloud service operations
In November 2013, Symantec discontinued its Backup Exec cloud service. It was a pure cloud-based offering designed for small businesses to backup data. But it lacked mobile and sync features, a necessity in today’s technology arena, which led to its closure.
Symantec has a strong position in the backup market
In 2013, IDC stated that Symantec commanded a 30% market share in backup. NetBackup Appliance posted a 35% year-on-year growth, making it one of the company’s fastest growing businesses. The company has disclosed it’s increased investments in cloud-based disaster recovery services, partnering with Microsoft Azure. It anticipates that cloud-based disaster recovery will be a multi-billion dollar market. Data Corp. expects the Cloud storage market to surpass $7.2 billion by 2014.
New and differentiated offerings expected in fiscal year 2015
During 1Q15, Symantec released appliances—including Backup Exec 2014, Enterprise Vault 11.0, and Disaster Recovery Orchestrator—that automates and manages disaster recovery of Windows-based applications residing on either physical or virtual machines to the Microsoft Azure cloud. During fiscal year 2015, it plans to release NetBackup and IT Resiliency that bridge heterogeneous infrastructure and includes on‐premise and cloud capability.
Rising competition in backup and recovery space
The rising competition in backup and recovery space can be gauged from the rising investments by established leaders like EMC (EMC), IBM (IBM), and CommVault Systems (CVLT) in this space. Free software offered by AVG Technologies (AVG) and Avast in the consumer segment adds fuel to the competition and adds to Symantec’s woes.