Symantec Upgrades Backup Software En Route to $20
Symantec (NASDAQ:SYMC) recently announced the launch of Backup Exec 3600 and NetBackup 5220, the latest versions of its data backup solutions for large enterprises. [1] Symantec makes a major portion of its revenues from its Storage software division, through which it offers storage management, high availability and backup & recovery software. The Storage business division accounts for more than 40% of the $20 Trefis price estimate for Symantec. Symantec competes primarily with EMC (NYSE:EMC), IBM (NYSE:IBM), NetApp (NASDAQ:NTAP), Hewlett-Packard (NYSE:HPQ) in this segment.
Storage & Backup Software to Drive Symantec’s Growth?
NetBackup is an enterprise level suite which offers backup and recovery for multiple platforms including Windows, Unix, Linux etc. BackupExec is primarily designed for the Windows platform. NetBackup is relatively more expensive than BackupExec, but it comes with encryption features and supports many more applications than BackupExec. On the other hand, BackupExec comes with a continuous protection feature while NetBackup doesn’t.
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Both of the new upgrades by Symantec – BackupExec 3600 and NetBackup 5220 – come with certain key features:
- support for virtual machines and environments
- fast recovery and low storage costs
- support for Symantec’s V-Ray technology, which provides complete access to virtual machines for security, backup and recovery
- de-duplication to reduce the volume of backup data and enable faster backups for physical and virtual systems
Backup Exec 3600 will also support vSphere 5 by VMware, which is the most widely used enterprise virtualization solution. Symantec will include support for vSphere 5 in the next version of NetBackup.
Symantec currently has 18% marketshare in storage software. We expect it to steadily increase its share in the growing market to just about 20% by the end of the forecast period. With a successful launch and greater adoption by enterprises, Symantec could gain additional share at the expense of IBM, EMC and NetApp which offer similar backup and recovery products. We currently see a 25% upside to Symantec’s market price.
Check out our complete coverage of Symantec.
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