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Why growth in PBBA market is positive news for Symantec

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Global PBBA market suffers a decline

According to the International Data Corporation (or IDC), worldwide purpose-built backup appliance (or PBBA) revenues grew 8.5% on a year-over-year basis to $783.2 million in 2Q14. EMC Corporation (EMC) continues to lead the overall PBBA market with 63.7% revenue share in 2Q14. It’s followed by Symantec Corporation (SYMC) with 13.9% market share. IBM (IBM) and Hewlett-Packard (HPQ) posted 6.8% and 3.9% market share, respectively. As the chart below shows, Barracuda Networks (CUDA) held 2.0% share of the worldwide PBBA market, but it registered the highest year-over-year growth of ~36% among all the top five players.

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PBBA is significant part of Symantec’s Information Management segment

The PBBA market contribution accounts for approximately 18% of Symantec’s Information Management revenues. Considering the double-digit growth rate in the segment, it’s an important business category for the division. In the PBBA space, there’s a huge gap in the market share of the top two players, Symantec and EMC. Symantec holds a much larger share of ~36% in the enterprise-grade backup appliance market. In the PBBA market, Symantec holds ~14% share, which is well below market leader EMC’s 64% share as of 2Q15.

Netbackup appliance continues to post high growth

In 2Q15, revenue growth for NetBackup appliances grew to 45% compared to 35% in the first quarter of fiscal year 2015. According to Gartner, Enterprise Distributed System Backup or Recovery Software Market grew 6.8% in 2014. This high growth in the NetBackup appliances led to a 22% expansion in revenues from the overall PBBA product category to $108.5 million, as the above chart shows.

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