IDC: WW Online Backup Services Market to Reach $715 Million by 2011

Fueled by a combination of factors, including the tremendous growth in
digital data generated by individuals and small businesses, the worldwide
online backup services market is poised for growth. IDC estimates revenue for
this emerging market to reach $715
million by 2011, representing a 33.3% compound annual growth (CAGR) between
2006 and 2011.

"Consumers and small businesses especially are
interested in alternative methods of protecting their data, as traditional
backup methods fall short regarding efficiency, reliability, and
ease-of-use," said Doug Chandler, research director for Storage Services
at IDC. "Online backup has become an attractive approach for many
customers, with the advent of cheaper broadband access, users’ greater comfort
level with Web-based services, and the growing business need for a second site
for remote data protection purposes."

Among key assumptions
behind IDC’s forecast are the following:

• More than 50% of spending in this market will be in
  North America in earlier years, with other regions gaining share through 2011.

• Adoption by consumers and small businesses will
  dominate the market for several years, with slower adoption by medium-sized
  businesses and enterprises.

• Year-over-year growth will slow beginning in 2010, as
  services practices begin to standardize, pricing competition has an impact, the
  supplier community consolidates, and in some cases online backup becomes a
  built-in feature in other online/Web-based services offerings.

IDC’s study, Online Backup Services Forecast 2007 – 2011: A New Market Emerges,
presents a five-year forecast for the online backup services market,
discusses key issues and offers guidance for providers.

IDC