REPORT: IBM Achieves Top Growth Among Leading Storage Software Vendors

ARMONK, NY - 12 Sep 2006: IBM (NYSE: IBM) outperformed storage software vendors EMC and Symantec[1] in the second quarter of 2006, according to data released by IDC[2]. According to the new report, IBM grew storage software revenue 35 percent and was the only vendor among the top three to increase its revenue share, resulting in a year-over-year rise in market share of nearly two and a half points, as reported by IDC.

According to the IDC report, IBM’s performance outpaced the industry’s overall storage software revenue growth, which was measured at nearly nine percent year-over-year growth.

IBM also grew in numerous storage software categories, according to the IDC report. Among all the vendors measured by IDC, IBM continued to show the top growth rate with an increase of 5.5 points in revenue share year-over-year in the Data Protection and Recovery segment, which includes IBM Tivoli Storage Manager.

When compared with the top three vendors, IDC reported that IBM showed the highest year-over-year revenue share gain in the Storage Infrastructure Software segment. The IDC report also indicated that IBM grew 25 percent year-over-year in the Storage Management Software segment, which was fueled by growth of IBM’s TotalStorage Productivity Center software.

“Companies are increasingly looking to storage software to manage data growth and improve the overall health and performance of their IT infrastructures,” said Hershel Harris, VP, IBM Tivoli Storage and Security. “IBM continues to demonstrate leadership throughout our storage portfolio -- including software, hardware and services -- and our standards-based solutions provide customers with flexibility to improve utilization and application availability among multi-vendor systems.”

Today’s announcement highlights IBM’s momentum in the storage marketplace. According to an IDC report, IBM recently marked the sixth consecutive quarter of revenue growth in external disk storage systems. The IDC report revealed continued growth for IBM in external disk storage systems, with IBM outpacing EMC in year-to-year revenue growth rate for the fifth consecutive quarter[3].

For information about IBM and its storage solutions, please visit http://www.ibm.com/storage.

[1] Note: Symantec is reported as the combined entity of Symantec and VERITAS prior to 3Q05 and includes KVS revenue starting with 3Q05.

[2] Source: IDC Worldwide Quarterly Storage Software Tracker Q2 2006.

[3] Source: IDC Worldwide Quarterly Disk Storage Systems Tracker Q2 2006.

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Meredith Hannon

IBM Media Relations

IBM

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