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Backup appliance sales take turn for the better

The backup appliance market rebounded last quarter following a year-over-year decline in the first quarter of the year, according to IDC’s quarterly tracker numbers.

The backup appliance market hit $783.2 million in revenue last quarter, up 8.5% over the same quarter last year. That follows a 2.5 percent decline to $664.5 million for the first quarter of 2014 for what IDC calls the purpose-built backup appliance (PBBA) market.

The rise in backup appliance revenue came in a quarter in which disk storage systems declined, so the gains were not part of overall increased spending. However, data protection software revenue also increased 10.2% year-over-year last quarter, according to another IDC report.

Robert Amatruda, IDC’s research director for data protection and recovery, maintains the rebound shows the value that appliances bring to backup – especially as companies begin preparing to incorporate the cloud.

“I believe that appliances bring measureable value to the data protection process,” Amatruda wrote in an e-mail. “PBBA systems are turnkey, highly tuned for backup and recovery. Also, they will be instrumental in the new era of cloud backup. PBBAs will help facilitate the movement of data on and off premise.”

EMC maintained its overall lead with $498.7 million for 63.7 percent of the market, thanks to its Data Domain platform. EMC’s revenue grew 10.7 percent and its market share ticked up 1.3 percent from last year and 4.8 percent over the first quarter of 2014.

No. 2 Symantec made a bigger jump with $108.5 million for 21.9 percent growth. Symantec’s revenue came mostly from its NetBackup appliances, and enabled the vendor to move from 12.3 percent of the market in the second quarter last year to 13.9 percent in 2014. The quarter was a big turnaround for Symantec, which declined 10.9 percent year-over-year in the first quarter of 2014.

IBM remained third with $53.6 million in revenue, up 2.3 percent from last year. No. 4 Hewlett-Packard dropped 20.1 percent to $30.6 million, and its share fell from 5.3 percent to 3.9 percent. One reason for the big decline is HP discontinued its VLS enterprise backup target that it sold through an OEM deal with Sepaton. HP is now solely focused on its internally developed StoreOnce appliances.

“HP needs to continue to aggressively market and propagate StoreOnce inside and outside of its installed base,” Amatruda wrote. “HP has great technology and broad portfolio. There’s no reason it should not be growing faster.”

Barracuda moved into sole possession of fifth place with 35.7 percent growth to $16 million. That gives it two percent of the market – up from 1.6 percent a year ago. Barracuda was in a statistical tie with Quantum in the first quarter of 2014.

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