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Netting Out NetBackup

Integrated PBBAs: The Times are a Changing

Created: 24 Jun 2013 • Updated: 25 Jun 2013
Phil Wandrei's picture
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My how things change in only 3 months since I wrote “Are we witnessing the transformation from Target to Integrated PBBAs?” The local Blockbuster was closing down, and now there is no evidence of its existence. The strip mall repainted the blue and yellow interior and exterior to match the rest of the mall, and is now awaiting the new tenant. 

Within the PBBA market, there have been dramatic changes in the last three months as well. IDC reported their Q1 2013 results, Worldwide Purpose-Built Backup Appliance (PBBA) Market Experiences Robust Growth in First Quarter of 2013. Symantec continues to lead the industry with 149.3% year-over-year growth, and outpaced both the industry (16.5%) and its competitors (EMC 8.4% and Quantum 2.5%). One surprising note is that in spite of a growing industry, two companies reported negative growth (IBM -30.5% and HP -6.3%). 

A Closer Look

By looking at the numbers in greater detail1, I found three interesting points,

  1. Integrated appliances continue to drive the PBBA Open Systems Growth. By filtering out Mainframe Systems, Open Systems are growing at 22.8% year over year. Taking it one step further and segmenting Open Systems into Integrated versus Target appliances, it highlights that Integrated Appliance are growing 5 times faster. Integrated appliances include the backup software, manage the data movement, and include deduplication. Target appliances typically only offer deduplication and are dependent on a third-party backup software application for data movement. 

IDC - Ingrated appliance 6-13.jpg

  1. Symantec is driving the PBBA market growth. Symantec is nearly double its nearest competitor. 

IDC - Open Systems Growth 6-13.jpg

From Q1 ’12 to Q1 ’13 the Open Systems PBBA market grew by $113.6M. Of this amount, Symantec accounted for $61.3M or $53.9% of the revenue growth.

Symantec’s growth is further validation of the acceptance and preference of Integrated PBBAs. Integrated PBBAs include the backup software along with additional features such as deduplication to reduce OpEx and CapEx. Target PBBAs add cost and complexity as they require a third-party backup application to catalogue and move data. 

  1. Symantec is a leader in the Open Systems – Integrated Appliance market. It was less than 3 years ago that Symantec first entered the backup appliance market, and has grown from 0% to now having 45% of the market space.

IDC - Market Share 6-13.jpg

Conclusion

While numbers are important, it is critical to understand it is our Customers who are responsible for the phenomenal growth. Customers having to manage dynamic data growth, face limited budgets, and have to transition to new technologies to support their dynamic environment. Customers who have evaluated and purchased Symantec NetBackup integrated appliances to address these challenges and save them time and money. 

By the Numbers (or extra credit for showing my work)

Here is my work… 

IDC reports on the Worldwide PBBA factory revenue numbers. It is important to understand that they also report and breakdown the numbers several different ways. For example: 

  • Hosted System:  Open Systems or Mainframe. IDC press release is based on Hosted System revenue. 
  • Revenue:  Factory or Customer. IDC press release is Factory. 
  • Product Category:  Integrated or Target.

For my analysis I used Open Systems and Factory revenue, based on 1Q13/1Q12 growth. 

Vendor

2012 - Q1

2013 - Q1

Industry $ Growth

Industry % Growth

 EMC

 $      348.4

 $      380.2

 $       31.8

28.0%

 Symantec

 $        41.0

 $      102.3

 $       61.3

53.9%

 IBM

 $        17.4

 $        13.8

 $        (3.6)

(3.6)%

 HP

 $        30.6

 $        28.7

 $        (1.9)

(1.9)%

 Quantum

 $        18.0

 $        18.5

 $         0.4

0.4%

 Fujitsu

 $        11.4

 $        21.5

 $       10.1

8.9%

 Sepaton

 $           7.2

 $           8.6

 $         1.4

1.2%

 ExaGrid

 $           8.5

 $           8.1

 $        (0.4)

(0.3)%

 Dell

 $           3.8

 $           8.2

 $         4.4

3.9%

 Other

 $        12.2

 $        22.3

 $       10.1

8.9%

 Total

 $      498.5

 $      612.1

 $     113.6

100.0%

 Source: 

  1. IDC Worldwide Quarterly Purpose-Built Backup Appliance Tracker – 2013 Q1, Publication Date: 6/20/2013