EMC Gains Share in Growing Storage Software Market


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EMC ( EMC ), the leader in storage hardware and software, reported strong performance in first quarter of 2011 extending its share in the $3.5 billion worldwide storage software market to 23.8%, up from 22.4% during the same period last year. EMC was well ahead of its competitors that placed 2 nd , 3 rd and 4 th respectively - Symantec (NASDAQ:SYMC) at 16.0% market share, IBM (NYSE:IBM) at 14.4% and NetApp ( NTAP ) at 8.4%.

We currently have a $37.60 Trefis price estimate for EMC , well ahead of market price.

Strong Growth in Worldwide Storage Software Market

The worldwide storage software market ended the first quarter of 2011 with revenues of nearly $3.5 billion, a 12.4% increase over the same quarter one year ago. According to IDC, the increase was partly driven by continued demand for recently refreshed products as well as a general desire to improve the way corporate data is stored and protected.

The storage infrastructure market experienced the highest year-over-year growth of 29.3%, making the market worth $333 million in revenues in 1Q '11. Data protection and recovery remained the largest market segment by a considerable margin with sales surpassing $1.4 billion for the quarter, an increase of 12.7% over 1Q '10.  (( Worldwide Storage Software Market- 1Q11 , IDC))

We currently forecast a 5% growth in the total storage software market during 2011.

EMC Gains Share Driven by Strong Performance in Storage Hardware

While EMC's storage software market share was up in 1Q11 year over year, it decreased by 1.6% sequentially from 25.4% in Q4 2010. We currently forecast EMC's share to improve by one percentage point in 2011 reaching 25.4% as EMC continues to gain share in storage hardware market, which influences the sales of software products.

See our full analysis for EMC stock here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets
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