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NetBackup appliance continues to post high growth in fiscal 4Q15
As we’ve already seen, Symantec’s (SYMC) NetBackup appliances grew by 88% and 46% in fiscal 4Q15 and fiscal 2015, respectively. The recent launch of the NetBackup 5330 appliance aided Symantec’s expansion into larger enterprise environments and drove growth in the segment.
Growth in the NetBackup appliance market has ensured an increase in Symantec’s PBBA (purpose-built backup appliance) revenues. They stood at $417.5 million in 2014 compared to $359.4 million in 2013. In April 2015, IDC (International Data Corporation) released its recent report, divulging the 2014 annual revenue figures for the PBBA market.
PBBA market crossed the $1 billion mark in 4Q14
IDC stated in 4Q14 that the PBBA market broke the $1 billion milestone. This figure is significant since this market is poised to grow to $4.4 billion by 2018, growing at a five-year compound annual growth rate (or CAGR) of 7.5%.
Symantec led 2014 growth in integrated appliance market
In 2014, IDC stated that Symantec led the growth in the integrated appliance market with year-over-year growth of 16.2%. This is more than two times the market growth of 7.9%. On the other hand, EMC (EMC), the leader in the PBBA space, had a negative growth of 2.9%. IBM (IBM), Hewlett-Packard (HPQ), and Quantum are other top leading players in the PBBA space. As the above chart shows, among the top five players, Symantec is the only player to increase market share.
Although the PBBA market is growing 4.0% on a year-over-year basis, it’s open systems that’s growing 6.8% annually. Integrated appliances are closely integrated with the backup software. It can have master or media servers built into the system to adapt the movement and backup of data to other systems. Target appliances are used in sync with third-party backup software. They’re designed to mingle in varied environments.
Within open systems, it’s the integrated appliances that are growing 25.6% faster when compared to target appliances. Symantec management stated, “With its integrated appliances, Symantec NetBackup integrated appliances are addressing the most significant challenges organization[s] face; limited headcount and resources.”
If you’re bullish about Symantec, you can invest in the Technology Select Sector SPDR Fund (XLK). XLK invests about 0.41% of its holdings in Symantec.
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