11 Dec 2020

COVID-19 Accelerates Data Protection as a Service in EMEA, Triggering a 4.5% Decline in the PBBA Market in 3Q20, says IDC

LONDON, December 11, 2020 — Increased use of data protection as a service and economic constraints caused by the pandemic have affected the EMEA purpose-built backup appliance (PBBA) market, which declined 4.5% in value year on year to $310.9 million in the third quarter of 2020, according to International Data Corporation's (IDC) Worldwide Quarterly Purpose-Built Backup Appliance Tracker.

"Due to social distancing and working from home, there has been an acceleration of data protection as a service (DPaaS), which includes disaster recovery as a service, backup as a service, and archive as a service, to reduce in-house infrastructure and labor," said Jimena Sisa, senior research analyst, EMEA Storage Systems, IDC. "When enterprises were considering IT offers aimed at reducing total cost of ownership, they were more eager to shift to an operational model when purchasing their backup and disaster recovery solutions to reduce uncertainty and get a framework that would help address their future demand needs."



EMEA PBBA Value by Product, 3Q20 (Value $M)

Value ($M)

3Q19 Value

3Q19 Market Share

3Q20 Value

3Q20 Market Share

3Q20/3Q19 Growth

Mainframe systems

$18.0

5.5%

$6.9

2.2%

-61.5%

Open systems

$307.6

94.5%

$303.9

97.8%

-1.2%

Total

$325.6

100.0%

$310.9

100.0%

-4.5%



EMEA PBBA Open Systems, 3Q20 (Value $M)

Value ($M)

3Q19 Value

3Q19 Market Share

3Q20 Value

3Q20 Market Share

3Q20/3Q19 Growth

Integrated System

$156.4

50.8%

$154.3

50.8%

-1.4%

Target System

$151.2

49.2%

$149.4

49.2%

-1.2%

Total

$307.6

100.0%

$303.7

100.0%

-1.3%

Regional Highlights

Western Europe

The PBBA tracker for Western Europe declined in value 5.7% year-on-year, reaching $248.1 million in 3Q20.

Although the DACH market continued to be the largest and strongest in Western Europe in 3Q20, responsible for 26.6% of market value, it reported a decrease of 30.8% year on year.

The U.K.&I. lost 1.8 points in market share since last year, at 23.7% market value, and declined 12.2% in value year on year.

The French PBBA market reported a rise of 2.5% year on year in value and 16.6% market share.

PBBA demand in Western Europe in Q320 has been somewhat reduced by a move to cloud data protection, with the greatest impact on mainframes (VTL), which declined 61.4% in market value, followed by target systems (-2.9% YoY) and then integrated systems (-1.2% YoY).

"The relationship of technology to the success of businesses is considered critical not only during the pandemic, but also in the digital economy post-pandemic. Hence, PBBA vendors that support different consumption models, exploit cloud economics, and provide protection for different and new architectures would be the most successful and considered by enterprises," said Sisa.

CEMA

As expected, the growth in value of the PBBA market in CEMA slowed and remained flat YoY during Q320, recording $62.8 million.



The shares of the two subregions were almost equal as CEE recorded impressive growth of 34% YoY fueled by most of the countries in the region. Part of this performance was due to the decline in the quarter a year ago. Despite the growing demand for data protection in the context of remote work and education, MEA saw a reduction in PBBA spending of 18% YoY coming from the largest countries in the region.



"End users' investment plans in the second half of 2020 were more focused on shifting to public cloud and HCI, restraining the investments in DC infrastructure," said Marina Kostova, research manager, CEMA storage systems. "Data protection was undoubtedly a priority in the pandemic environment, but public cloud solutions partially cannibalized the traditional backup appliances market."

Taxonomy Notes

IDC defines a purpose-built backup appliance as a standalone disk-based solution that uses software, disk arrays, server engines, or nodes that are used for backup data and specifically for data coming from a backup application (e.g., NetWorker, NetBackup, TSM, and Backup Exec) or that can be tightly integrated with the backup software to catalog, index, schedule, and perform data movement. PBBAs are deployed in standalone configurations or as gateways. PBBA solutions deployed in a gateway configuration connect to and store backup data on general-purpose storage. Here, the gateway device serves as the component that is purpose built solely for backup and not to support any other workload or application. Regardless of packaging (as an appliance or gateway), PBBAs can have multiple interfaces or protocols. They can also provide and receive replication to or from remote sites and a secondary PBBA for disaster recovery.

IDC's Worldwide Quarterly Purpose-Built Backup Appliance Tracker provides vendor share, market size, and forecasts for purpose-built backup appliances. IDC provides key market insights and growth for vendors active in the PBBA market and for those looking to introduce new products into the market. Revenue and capacity for disk systems behind PBBA gateways are included in the PBBA market sizing and forecast. Some PBBA solutions integrate the data movement engine (backup application) with the appliance, while others serve only as a target for incoming backup application data. Both solutions are included in PBBA market sizing, though segmentation between the two product categories is provided.

Major companies covered in the tracker include Dell Inc., Veritas, HPE, IBM, Quantum, Barracuda, Oracle, Fujitsu, Exagrid, HDS, Unitrends, and FalconStor Software.

Coverage