WW Purpose-Built Backup Appliance Market Down 8% Y/Y in 3Q16 – IDC

WW purpose-built backup appliance (PBBA) factory revenues were down 7.9% year over year, totaling $737.5 million in the third quarter of 2016 (3Q16), according to the International Data Corporation (IDC) Worldwide Quarterly Purpose-Built Backup Appliance Tracker.

Total PBBA open systems factory revenue decreased 7.2% year over year during the quarter with revenues of $686.1 million. Mainframe systems sales experienced a year-over-year decline of 17.1% in 3Q16.

Total worldwide PBBA capacity shipped for 3Q16 totaled 920PB, an increase of 12.1% from 3Q15.

“The PBBA market closed out the third quarter on a downturn, following a similar trend as the enterprise storage systems market,” said Liz Conner, research manager, storage systems. “Spending in more mature geographies saw a decline, while the market saw favorable growth in emerging markets. Meanwhile the shift in spending away from commodity hardware continues, with PBBA software spending taking market share.”

Total WW PBBA 3Q16 Results
Dell Technologies maintained its lead in the overall PBBA market with 60.3% revenue share during the quarter, followed by Veritas with 15.2% share. IBM and HPE were statistically tied** for the third position with 5.7% and 4.8% market share, respectively. Quantum held the number five PBBA vendor position with a 2.5 % share.

Top 5 Vendors, WW PBBA Factory Revenue, 3Q15-3Q16
(revenues in $ million)
(Source: IDC Worldwide Purpose Built Backup Appliance Quarterly Tracker, December 15, 2016)

Notes:
* Symantec and Veritas are reported as an entity in the table to reflect year-over-year growth. Starting 1Q16, PBBA Tracker reports Veritas instead of Symantec due to the separation between the two companies.
** IDC declares a statistical tie in the purpose-built backup appliance market when there is less than one percent difference in the revenue share of two or more vendors.

Top 5 Vendors, WW PBBA Factory Revenue, 3Q15-3Q16
(shares based on revenue)

(Source: IDC Worldwide Purpose Built Backup Appliance Quarterly Tracker, December 15, 2016)

*Dell Technologies represents the combined revenues for Dell and EMC
Veritas appears instead of Symantec starting 1Q16 after the separation of the two companies.

Taxonomy Notes:
IDC defines a purpose-built backup appliance (PBBA) as a standalone disk-based solution that utilizes software, disk arrays, server engine(s), or nodes that are used for a target for backup data and specifically data coming from a backup application (e.g., NetWorker, NetBackup, TSM, and Backup Exec) or can be tightly integrated with the backup software to catalog, index, schedule, and perform data movement. The PBBA products are deployed in standalone configurations or as gateways. PBBA solutions deployed in a gateway configuration connect to and store backup data on general-purpose storage. Here, the gateway device is serving as the component that is purpose built solely for backup and not for supporting any other workload or application. Regardless of packaging (as an appliance or gateway), PBBAs can have multiple interfaces or protocols. Also, PBBAs often can provide and receive replication to or from remote sites and a secondary PBBA for the purpose of DR.