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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST

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To: buck who wrote (9691)3/30/2000 12:13:00 PM
From: Nathan L.  Read Replies (1) of 17183
 
EMC Takes Over Lead in Storage Management Software Market, According to Gartner's Dataquest
Thu Mar 30 08:15:00 EST 2000

SAN JOSE, Calif., Mar 30, 2000 (BUSINESS WIRE) --
Dataquest Predicts 2000 Conference to Examine Future of Storage Management Software Industry

Driven by strong growth in all of its software products, particularly Symmetrix
Manager, VolumeLogix and PowerPath, EMC Corporation jumped ahead of IBM/Tivoli
and Computer Associates (CA) to claim the top spot in the worldwide storage
management software market in 1999. EMC's license revenue was $763.5 million in
1999, an 84 percent increase over its 1998 revenue of $416.1 million, according
to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB).

"EMC has continued to bring new products to market based on internal
development, partnerships, and acquisitions, as well as doing an outstanding job
of marketing and sales," said Carolyn DiCenzo, chief analyst for Dataquest's
Network, System and Storage Management Software Worldwide program.

IBM/Tivoli dropped to No. 2 in 1999 with market share of 17.3 percent. CA moved
to the No. 3 position with 16.4 percent market share. VERITAS and BMC Software
rounded out the top 5 with market share of 12.1 percent and 5.6 percent,
respectively (see Table 1).

Table 1
Storage Management Software Vendor New License Revenue
Estimates for 1999
(Millions of Dollars)

Company 1999 1999 Market 1998 1998 Market Growth
Revenue Share (%) Revenue Share (%) (%)
EMC 763.5 18.2 416.0 14.5 84.0
IBM/Tivoli 725.6 17.3 602.6 21.0 20.0
CA 690.1 16.4 531.2 18.6 30.0
VERITAS 507.1 12.1 293.5 10.3 73.0
BMC Software 235.7 5.6 165.4 5.8 43.0
Others 1,278.5 30.4 854.1 29.8 50.0
Total Market 4,200.5 100.0 2,862.8 100.0 47.0

Source: Dataquest (March 2000)

As the storage management software market continues to consolidate, making the
big players bigger, opportunity still exists for small vendors with innovative
technology, especially in the storage infrastructure, storage resource
management and HSM product areas.

"Vendors playing in the same space as the top-tier vendors will need to have
geography, industry or application focus," said Ms. DiCenzo. "It will be
increasingly difficult to compete against the large sales and service
organizations of the top-tier players and small vendors should seriously look at
acquisition offers before the bigger vendors acquire similar technology
elsewhere."

Additional information on the storage management software market is available in
the Dataquest Research Brief "EMC Leads 1999 Storage Management Software
Market." The Brief offers a first look at the leaders in the marketplace. More
detailed data will follow in upcoming market statistics and market trend
reports.

These reports are produced for Dataquest's Network, System, and Storage
Management Software Worldwide program. This program provides in-depth analysis
of one of the hottest software technology areas - the explosive market for
network, system, and storage management tools. More information on this program
is available on Dataquest's Web site at
dataquest.com scopes/n04nssmww.html

Dataquest analysts will examine the future of the storage management software
market during the upcoming Gartner's Dataquest Predicts 2000 Conference, to be
held May 1-3 at The Westin Santa Clara. Dataquest analysts will provide their
outlook for the high-technology industry. Members of the press can register for
the conference by contacting Josh Lefkowitz at 212-320-2335, or at
jlefkowitz@tsicomm.com. Additional information on the event is available on
Gartner's Web site at gartner.com.

Gartner's Dataquest is the recognized leader in providing the high-technology
and financial communities with market intelligence for the semiconductor,
computer systems and peripherals, communications, document management, software,
and services sectors of the global information technology industry.

Gartner, the world's premier business technology advisor, was founded in 1979
and is headquartered in Stamford, Connecticut. Gartner provides unrivaled
thought leadership for more than 3,600 client organizations worldwide. It
achieved 1999 revenue of $734 million and has 80 locations worldwide. Gartner's
3,600 associates, including 1,200 research analysts and consultants, help
clients achieve their business objectives through the intelligent and efficient
use of technology. For more information about Gartner's industry-leading
research capabilities, services and events, please visit gartner.com.
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