10. Storage Software Growth Plateaus
While the market for purpose-built backup appliances had strong growth, as shown in the most recent quarter of 2012, sales of storage software stagnated, according to analyst firm IDC.
The worldwide storage software market in the second quarter of 2012, which totaled $3.4 billion, rose an anemic 0.9 percent over last year, IDC reported in September. That's a meager $40 million or so.
On the other hand, total worldwide sales of purpose-built backup appliances reached $657 million in the second quarter of 2012, up an impressive 29.8 percent over the $506 million reported in the second quarter of 2011, IDC said.
This does not bode well for the software-only storage vendors who are seeing hardware vendors acquire software developers and eat away at that business. Now we all know why Symantec entered the backup appliance business.