EMEA Purpose-Built Backup Appliance Market Declined in 4Q17

EMEA Purpose-Built Backup Appliance Market Declined in 4Q17
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EMEA purpose-built backup appliance (PBBA) vendor revenues declined 9.5% year over year to reach $233.6 million in the fourth quarter of 2017, according to IDC. Total EMEA PBBA open systems vendor revenue decreased 7.3% year on year, with revenues of $216.7 million. Mainframe system sales decreased 30.2% year on year in 4Q17.

"PBBA is still a key component of the backup and DR solutions for the EMEA organizations, but the advent of other new backup and DR solutions such as hyperconverge, cloud gateways, and cloud-native applications are impacting negatively on demand for PBBA solutions in this region," said Jimena Sisa, senior research analyst, EMEA Storage Systems, IDC.

EMEA PBBA Vendor Revenue by Product, 4Q17 (Revenues in $M)

Vendor Revenues ($M)

4Q16 Revenue

4Q16 Market Share

4Q17 Revenue

4Q17 Market Share

4Q17/4Q16 Growth

Mainframe systems

$24.3

9.4%

$16.9

7.2%

-30.2%

Open systems

$233.8

90.6%

$216.7

92.8%

-7.3%

Total

$258.1

100.0%

$233.6

100.0%

-9.5%

Open Systems

Vendor Revenues ($M)

4Q16 Revenue

4Q16 Market Share

4Q17 Revenue

4Q17 Market Share

4Q17/4Q16 Growth

Integrated System

$96.4

41.2%

$64.3

29.7%

-33.3%

Target System

$137.4

58.8%

$152.4

70.3%

10.9%

Total

$233.8

100.0%

$216.7

100.0%

-7.3%

Vendor revenue in Western Europe decreased 7.2% year on year in 4Q17 to $181.9 million. Nevertheless, an increase that came from target systems has been reported with a 17.8% rise year on year. Some countries show stable macros with some modernization deals. There was robust PBBA spending in Iberia and Benelux, with year-on-year growth of 38.2% and 24.6%, respectively. In the United Kingdom, uncertainty is still high, with lower business confidence due to Brexit and political turmoil.

The Central and Eastern Europe, Middle East, and Africa (CEMA) PBBA market failed to keep the momentum from the previous quarter and declined 16.6% for $51.7 million in 4Q17. A change of backup strategy of some of the leading vendors and higher penetration of smaller companies affected market ranking and overall market performance.

The total market in both CEMA subregions recorded a double-digit decline, though displaying different segment preferences. Central & Eastern Europe (CEE) target PBBA systems kept the positive trend, while integrated systems contracted significantly. Conversely, investments in integrated systems in the Middle East & Africa (MEA) continued to grow, tripling their share year on year.