It looks like the war of words between Veritas and CA has already started. Rearranging the market share numbers from Gartner may explain why.
Storage Management Software
1999-2000
Market Market
Company 1999 Share 2000 Share
Indie Storage Vendors
EMC $ 803M 19.6% $1,341M 25.5%
NTAP 53M 1.3% 156M 3.0%
STK 113M 2.8% 144M 2.7%
Sub-Total $ 969M 23.7% $1,641M 31.2%
Server/Storage Vendors
IBM* $ 724M 17.7% $ 844M 16.1%
CPQ 45M 1.1% 143M 2.7%
HWP* 68M 1.7% 87M 1.7%
Sub-Total $ 837M 20.5% $1,074M 20.5%
Indie Software Vendors
VRTS $ 505M 12.3% $ 855M 16.3%
CA* 799M 19.5% 613M 11.7%
BMC* 229M 5.6% 224M 4.3%
LGTO 172M 4.2% 142M 2.7%
Sub-Total $1,705M 41.6% $1,834M 35.0%
Others $ 578M 14.1% $ 703M 13.4%
Grand Total $4,089M 100.0% $5,251M 100.0%
Comments:
1) CA, IBM, BMC and HWP control over 80% of the
enterprise systems management market which is
expected to go from $13.8B in 2000 to $24.9B in
2005. Those system management frameworks
contain basic management modules for
servers/PCs, storage and networks with advanced
management modules for applications and
business process. IBM and HWP make servers and
storage while CA and BMC are pure software
players trying to parlay their mainframe
expertise into distributed systems. Microsoft
and Compaq have also declared their intentions
to get into the systems management market.
2) Collectively, CA, IBM, BMC and HWP saw storage
management revenues decline from $1.82B in 1999 to
$1.77B in 2000, or by 2.7%, while the overall
storage management market grew from $4.1B in 1999
to $5.3B in 2000, or by 29%.
3) To offset their losses -- in the back-up
market to Veritas and in the overall market to
pure storage players like EMC, NTAP and STK --
the framework players have decided to modify
their frameworks in order to take full advantage
of the continued increase in the intelligence of
the storage system.
Note the predicament of the server vendors
like IBM, HWP and CPQ. More intelligent storage
systems dampen the demand for high-end MIPs.
Reduced demand for high-end MIPs (low volume/high
margins) plus continued price pressure in PCs and
low-end servers (high volume/low margins) act
like a vise on their business models.
4) The trend is clearly in favor of the pure
storage players who can provide an integrated
storage stack -- hardware, software and services.
For example, disk-based backup is on the rise whle
traditional tape-based backup is on the decline.
Disk-based backup favors the hardware maker.
Not surprisingly, a pure software player like
Veritas -- which depends on backup for 51% of its
license revenue and which has to navigate the
ambitions of its server and storage partners,
is already looking ahead and planning to enter
the systems management market against the likes
of CA, HWP, IBM and BMC.
5) This is how Gartner expects the Storage
Management Software market to look like in 2005:
Category 2000 % 2005 %
Storage Infrastructure $1.96B 37% $7.18B 43%
Data Management 2.33B 44% 5.68B 34%
ESRM (Enterprise Storage
Resource Management) 1.01B 19% 3.84B 23%
Total $5.30B 100% $16.7B 100%
Beyond backup: The storage management market grows up
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