Analyst Firm Says EMC Leads Worldwide Market for Purpose Built Backup Appliances

Press Release

EMCWORLD 2011 — LAS VEGAS — May 10, 2011 — EMC Corporation (NYSE: EMC), the world leader in information infrastructure solutions, announced that EMC® is the leading provider of disk-based backup appliances, according to the new IDC Worldwide Purpose Built Backup Appliance 2010-2015 Market Analysis and Forecast, 2010 Vendor Shares report (May 2011). During the year 2010, EMC commanded a sizeable lead in the Purpose Built Backup Appliances (PBBAs) market in terms of both revenue and raw capacity shipped. The new report, which addresses both open systems and mainframe attached products, also points to continued robust customer adoption of disk-based backup appliances over the next five years. Mainstay products from EMC in the PBBA category include Avamar® and Data Domain® systems as well as mainframe attached disk-based backup products that incorporate technologies from the EMC acquisition of Bus-Tech®, Inc., in November of 2010.

Highlights

• At the close of 2010, EMC was confirmed as the revenue share leader commanding 64.2% of the nearly $1.7 billion spent on PBBA solutions.
• EMC held the top share position in terms of total worldwide PBBA capacity with 52.7% of the raw TBs shipped.
• IDC anticipates the worldwide PBBA market will grow at a compound annual growth rate (CAGR) of 16.6% over the next five years, totaling well over $3.6 billion by the close of 2015. By contrast, over the same period, IDC expects Data Protection & Recovery (backup) software revenue to grow by 5.2%¹, and tape automation revenue to continue to shrink (-7.9%)².
• IDC’s forecast for PBBA capacity shipped calls for a 78.1% CAGR through the close of 2015 as customers continue to forego investments in their tape infrastructure in favor of disk-based backup appliances.

Industry Analyst Quote

“IDC research indicates that over the past several years, the customer drivers for increased investment in PBBA solutions result from the need to improve backup window time, provide faster restore and recovery times, and enable seamless integration with existing backup applications. In addition, the accelerated adoption of virtual servers and desktops are causing IT organizations to review and modernize their data protection architectures and processes with PBBA solutions.”
— Robert Amatruda, research director data protection and recovery at IDC

EMC Executive Quote

“EMC has been aggressively pursuing the emerging market for storage systems built specifically to protect backup and archive data for most of the decade. This new study shows the benefit of that focus. Over time, we believe these systems will play an even bigger role than backup software frameworks in enterprise data protection. Customers are proving that they value protection storage appliances as the simplest, most efficient consolidation point for backup/recovery.”
— William “BJ” Jenkins, President, EMC Backup Recovery Systems Division

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About EMC

EMC Corporation (NYSE: EMC) is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. Information about EMC’s products and services can be found at www.EMC.com.

¹ IDC Document #224526: Worldwide Data Protection and Recovery Software 2010-2014 Forecast, August 2010.

² IDC Document #223182: Tape Automation Worldwide Forecast 2010-2014, April 2010.

EMC, Data Domain, Avamar and Bus-Tech are registered trademarks or trademarks of EMC Corporation in the United States and/or other countries. VMware is a registered trademark or trademark of VMware, Inc. in the United States and/or other countries. All other trademarks used herein are the property of their respective owners.

This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) our ability to protect our proprietary technology; (iv) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (v) fluctuations in VMware, Inc.'s operating results and risks associated with trading of VMware stock; (vi) competitive factors, including but not limited to pricing pressures and new product introductions; (vii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (viii) component and product quality and availability; (ix) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (x) insufficient, excess or obsolete inventory; (xi) war or acts of terrorism; (xii) the ability to attract and retain highly qualified employees; (xiii) fluctuating currency exchange rates; (xiv) litigation that we may be involved in; and (xv) other one-time events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this release.

Contact Information

EMC Data Domain

Edward Luboja
203-210-7404
press@datadomain.com