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Dataquest: EMC is Market Leader in Storage Management Software Space

Driven by strong growth in its software products, EMC Corp. surpassed IBM/Tivoli and Computer Associates (CA) to clinch the top spot in the worldwide storage management software market in 1999, a market research firm reports. EMC's license revenue was $763.5 million in 1999, an 84 percent increase over its 1998 revenue.

The report by Dataquest Inc., a unit of analyst firm Gartner Group (www.gartner.com), showed EMC (www.emc.com) firmly in the market lead, with 1999 revenues of $763.5 million and market share of 18.2 percent. IBM/Tivoli (www.ibm.com) was second worldwide in 1999, with revenues of $725.6 million and a market share of 17.3 percent. CA (www.ca.com) came in third place, with revenues of $690.1 million and a market share of 16.4 percent.

As the storage management software market consolidates, making the big players bigger, the opportunities for smaller vendors exist more in niche marketing and innovative technology, especially in the storage infrastructure and storage resource management areas.

"Vendors playing in the same space as the top-tier vendors will need to have geography, industry, or application focus," said Carolyn DiCenzo, chief analyst for Dataquest's Network, System, and Storage Management Software Worldwide program. "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." - Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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