Data Protection and Management Market Grows

Following a growth spurt of almost 26% to $3.53 billion in 1998, the worldwide market for data protection and management software will increase another 12% in 1999, bringing revenues just below the $4 billion mark. Overall from 1998 to 2003, the market is expected to grow more than 89% to almost $6.7 billion.

"The continued need for large data warehouses for marketing, rich content for attracting customers to Web sites, and increasingly large transaction-based applications are all powerful drivers for data protection solutions for the enterprise," says Paul Mason, Vice President of IDC's Infrastructure Software research. "IDC expects this trend to continue for many years, thus offsetting the fall in vendor revenues from standalone PC and LAN server backup solutions, which are increasingly becoming low-cost commodities."

According to IDC, the backup, restore and archive segment presents vendors the largest opportunity in the overall market. In 1998, this segment accounted for almost 50% of the market's revenues, and in 1999, it will account for more than half. The data movement and replication market is the fastest-growing segment. It is expected to increase from $383 million in 1998 to $1.3 billion by 2003.

"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," Mason says. "Impatient Internet-based customers simply won't wait for a response. They'll just go elsewhere to find what they need."

U.S. vendors are capitalizing on the overall market opportunity better than international ones. In 1998, they captured more than 93% of its wealth. Computer Associates is the market's leading vendor, with a share almost twice as large as its closest competitor, IBM.

For IDC's new report, Data Protection and Management Submarkets, 1997-2003, contact Cheryl Toffel at (800) 343-4952, ext. 4389, or visit IDC’s Web site at