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NetBackup Software and Appliance Grow in Fiscal 1Q16

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NetBackup software and appliance continued to grow in 1Q16

In the last part of the series, we discussed Symantec’s (SYMC) Information Management—Veritas—performance in fiscal 1Q16. This segment finally attracted a buyer in The Carlyle Group for $8 billion on August 11, 2015. Symantec bought it in 2005 for $13 billion. We also saw that although NetBackup software appliances grew by 10% and 19%, Information Management failed to post growth. As we discussed previously in this series, Symantec has already lined up several products that will be launched in the near future.

 

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EMC continues to lead the PBBA space

Growth in the NetBackup appliance market has ensured a rise in Symantec’s PBBA (purpose-built backup appliance) revenue. In calendar 1Q15, EMC (EMC) maintained its leadership in the overall PBBA market with a 52.40% revenue share. It was followed by Symantec with an 18.50% share. IBM (IBM) and Hewlett-Packard (HPQ) held a 5.20% and 4.50% market share, respectively. Barracuda, Quantum, and Dell were the other players on the top five list in this space.

Global PBBA factory revenue grew by 6.90% on a YoY (year-over-year) basis to $719.3 million in calendar 1Q15, as reported by the IDC (International Data Corporation) in its June 2015 report. Among all of the players mentioned in the above chart, Barracuda, Quantum, and Symantec posted the highest YoY growth. They reported ~65%, 58%, and 46% YoY growth, respectively.

You can consider investing in the Technology Select Sector SPDR Fund (XLK) to gain exposure to Symantec. XLK invest about 0.41% of its holdings in Symantec.

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