Symantec Lost Its Hold on the PBBA Market Due to the Veritas Sale



Symantec lost its grip on the NetBackup software space

In our recent Symantec series, we discussed Symantec’s (SYMC) fiscal 3Q16 results. Symantec completed the Veritas sale to the Carlyle Group on January 29, 2016. With Veritas out of its books, Symantec lost its grip on the NetBackup data backup software space. February 1, 2016, was the first day that Veritas operated as a private entity.

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EMC leads the PBBA space

NetBackup appliances are part of the PBBA (purpose-built backup appliance) market. EMC (EMC) continued to lead the market with a 61.4% market share in calendar 3Q15. You can see this in the above graph. It was followed by Symantec with a 14.3% market share due to its Information Management-Veritas operations. Hewlett-Packard (HPQ), IBM (IBM), and Dell were the other leading players in the PBBA market. The figures in the above graph come from a December 2015 report published by the IDC (International Data Corporation). In 3Q15, the total PBBA open systems factory revenue grew by 2.2% to $813.6 million.

The IDC expects the PBBA market to grow to $4.4 billion by 2018 at a five-year compound annual growth rate of 7.5%. Investors who want to gain exposure to Symantec can consider investing in the SPDR S&P 500 ETF (SPY). SPY has an exposure of ~29% to application software. It invests ~0.3% of its holdings in Symantec.


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