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Driven in part by Symantec’s storage deduplication software, we believe that Symantec (NASDAQ:SYMC) could be the market leader in the storage software market within the next three years. We expect the $12 billion storage software market to reach $17 billion by the end of Trefis forecast period.

Storage deduplication software is increasingly attractive to businesses that are grappling with the challenges of exponential data growth. Many businesses still backup data by writing it to a magnetic tape each night that is in a secure off-site storage location and much of the backup data has redundancies that can be eliminated to save storage space.

Data deduplication reduces the amount of data that is backed up by identifying redundant instances of backup data across all locations. Companies can reduce their storage hardware requirements by as much as 90% and bandwidth requirements by as much as 97%. This implies significant cost savings for businesses that have to keep spending on storage hardware for their backups.

Symantec's share in the storage software market is about 19% behind EMC which leads this market with a share of 24%. As more and more enterprises face IT budget cuts each year, Symantec could be a direct beneficiary because of its advanced deduplication technology. A 1% increase in Symantec's storage software market share translates to about $200 million in additional value to Symantec's market cap.

Disclosure: No positions

Source: Deduplication Software Could Give Symantec a Lead