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IDC Expects More Data Protection/Management Software Market Growth

A report by International Data Corp. (IDC, www.idc.com) released today shows the worldwide market for data protection and management software is booming -- increasing 26 percent to $3.53 billion in 1998 with no signs of slowing down. IDC analysts expect the market to increase another 12 percent in 1999, bringing revenues up to $4 billion. The overall market from 1998 to 2003 is expected to grow another 89 percent to almost $6.7 billion.

According to IDC, the backup, restore and archive segment of the market presents vendors with the largest opportunity. In 1998, this segment accounted for almost 50 percent of the market's revenues and in 1999 it is expected to account for more than half.

"The rapid growth in the data movement and replication software market can be attributed to the increasing need for reliability on all systems, not just those historically called mission critical," says Paul Mason, vice president of IDC's Infrastructure Software research. "Impatient Internet-based customers simply won't wait for a response. They'll just go elsewhere to find what they need."

The report, Data Protection and Management Submarkets, 1997-2003, tracks and forecasts through 2003 the overall data protection and management software market, as well as its submarkets: backup, restore and archive; media management; system-managed storage; data movement and replication; and storage utilities. The forecasts are segmented according to operating environment. The report also gives a comprehensive review of the 1998 market.

Another report published today by IDC shows that the worldwide removable storage market is having trouble breaking even. The report, 1999 Optical/Removable Storage Market Forecast and Review, shows that in 1998 market revenues fell 10 percent to $7.3 billion. While the compound annual growth rate for the market was only 1 percent, shipments skyrocketed to 34 percent in 1998. IDC forecasts that the shift from CD-ROM to DVD-ROM will be one of the major industry events of the next several years.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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