Veritas Software plans to double its storage software business in the Asia-Pacific region (excluding Japan), focusing on China and South Korea, said Veritas' top executive at the company's annual Asia-Pacific sales meeting in Hong Kong on Thursday.
Sales in North Asia have doubled over the past two years, representing the company's largest revenue generating area, according to Gary Bloom, Veritas president and chief executive officer. However, he did not give details of the company's revenue in the region.
Although the Chinese storage software market is expected to grow "in excess of 100 percent over the next two to three years," it will unlikely surpass Veritas' Japanese revenue, which has been growing at 50 percent year on year, because of the sheer size of the Japanese market, Bloom said.
Increasing interest in disaster recovery and data protection after the terror attacks in the U.S. in September last year have bolstered Veritas' business within the U.S. and the rest of the world, with "data protection no longer a discretionary item," Bloom said.
In lean times, companies are more likely to spend on such incremental improvements to infrastructure, according to Martin Widjaya, Singapore-based senior analyst of storage systems at International Data Corp. (IDC) Asia-Pacific.
"During times of economic crisis, companies are scaling back on IT investment and since hardware is a big capital investment, companies tend to get more out of their budget by applying storage management software," Widjaya said.
Storage device interoperability is provided through software, so companies providing such services tend to do well, Widjaya said. "For the next two years at least, storage software will still be growing rapidly, but of course, it started from a smaller base compared to storage hardware," he said.
IDC predicts that storage hardware sales in the region will continue to increase, although growth will slow. According to IDC figures, China is leading growth with forecasted revenues of US$587.7 million in 2001, up 45 percent from $404.1 million in 2000, with India a close second with storage revenues increasing 36 percent in 2001 to $183.5 million, up from $134.6 million the year before.