EMC Leads WW Purpose-Built Backup Appliance Market With 66% Market Share

The worldwide purpose-built backup appliance (PBBA) market experienced exceptional growth in 2011, according to a report from IDC written by Robert Amatruda.

The worldwide PBBA revenue totaled $2.4 billion in 2011, posting an 43.4% increase over the prior year.

The exceptional growth is due to increased use and customer adoption of PBBA systems for backup, recovery, and storage optimization with the use of data deduplication.

We believe the customer drivers for increased investment in PBBA solutions result from the need to improve backup window time, to provide faster restore and recovery times, and to enable seamless integration with existing backup applications. As a result, customers continue to aggressively move away from tape-based backup and recovery processes.

This trend will continue for the foreseeable future as customers take advantage of PBBA’s rich feature sets, particularly for virtual server protection, rapid recovery, and data deduplication. However, tape will still be used and deployed alongside PBBA systems in customer environments – primarily mainframe environments – and as an archive platform for open system customers. We continue to be upbeat on the growth potential of PBBA systems through the forecast period.

Key findings for 2011
in the worldwide PBBA market include:

• At the close of 2011, EMC remained the revenue share leader, commanding 65.5% of the total $2.4 billion PBBA solutions market. IBM and HP followed, with 15.3% and 4.1% revenue share, respectively. In addition, EMC held the top share position in terms of total worldwide PBBA capacity, with 64.7% of the raw terabytes shipped. IBM held 9.2% of the total worldwide PBBA capacity shipped, while HP held 8.9% for the same period.
• We expect the total worldwide PBBA revenue will grow robustly with a CAGR of 19.4%, totaling nearly $5.9 billion by the close of 2016 – driven by customers’ need to augment their existing data protection and recovery infrastructure or to modernize their environments taking advantage of data deduplication.
• Furthermore, we expect rapid growth in capacity shipped for PBBA solutions as customers continue to curb investments in their tape infrastructure for rapid recovery. We anticipate total capacity shipped will increase at a 56.2% CAGR, totaling nearly 8.6EB at the close of 2016.

 
WW Purpose-Built Backup
       Appliance Revenue
         by Vendor, 2011
              (in $million)

Note: Revenue share includes open and mainframe PBBA systems.
(Source: IDC, 2012)