IDC reported Monday that the worldwide email archiving applications market has grown by 45 percent in 2006, which was driven by the need for email archiving to satisfy compliance, legal discovery, and storage optimization requirements.
The hosted service delivery segment of the market posted strong growth in 2006, which was partly driven by financial services customers looking to transition their old SEC (Securities and Exchange Commission) or NASD (National Association of Securities Dealers) compliant archiving solutions into robust message archiving platform architectures, IDC of Framingham, Massachusetts said.
Customers are demanding integrated workflows that support legal discovery and audit requirements, IDC said. In addition, the aggressive reduction in the cost of connectivity and storage, combined with rising awareness of the new legal regime, underpin the green-field opportunities in the non-SEC compliant SMB (small and medium business) and mid-market segments, IDC said.
Email archiving is increasingly fueled by both business and IT requirements for electronic discovery and regulatory compliance as well as performance, capacity, and storage optimization, IDC said. IDC expects that over the next five years email and other content archiving solutions will converge as firms continue to focus on managing information against infrastructure, the firm said.
IDC is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make decisions on technology purchases and business strategy, IDC said. IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide, it added.
The other key findings include that Symantec/KVS will lead the market in 2006 followed by Zantaz Inc., based on the revenue of these companies, IDC said. The research also found that the hosted delivery model revenue will grow at a faster CAGR through 2011 than the on-premise one, IDC said. It also found that while the Americas will continue to account for the bulk of the spending, revenue contribution from EMEA and Asia/Pacific would also increase in the forecast period, IDC added.
The IDC study, ‘Worldwide Email Archiving Applications 2007–2011 Forecast and 2006 Vendor Shares: Storage Optimization, Mailbox Management, and Records Retention for eDiscovery and Compliance Drive Investments’, provides a market sizing of the worldwide email archiving applications market in 2006, as well as a 2007–2011 forecast, IDC said. This study also presents the 2006 revenue for top vendors, as well as profiles and competitive nature of key players, IDC added.
