THE451 LAUNCHES FLAGSHIP REPORT: STORAGE RESOURCE MANAGEMENT

New report on Storage Resource Management (SRM) provides comprehensive analysis of the market and determines industry winners and losers.

NEW YORK, August 12, 2002-Leading independent analyst group the451 believes that storage resource management (SRM) is a key enabling technology in the move toward the storage utility, yet there's no clear leader in a market that could top $1.5bn by 2005. In the report, the451 evaluates the winners and losers among more than 40 dedicated SRM players, major IT vendors and up-and-coming storage management startups. The report also identifies major barriers to adoption that all SRM players must overcome if they are to tap into this potentially lucrative market.

SRM offerings are, in simple terms, software tools that ease the storage management burden by offering a central point of control to monitor the usage of some or all of an organization's storage resources.

Fueled by a combination of high valuations, projected market growth and the high ratio of storage management costs to storage hardware costs, the past two years have seen a surge in the number of companies competing in the SRM market, with no clear market leader. These range from major IT vendors such as Sun Microsystems, Computer Associates and EMC; traditional disk and quota management vendors such as Precise-WQuinn and NTP Software; and newer startups with dedicated SRM technologies, such as Astrum Software, Tek-Tools and TrelliSoft. In addition, the emergence of a variety of storage management startups with one eye on SRM means that the market is wide open. Organizations large and small looking to purchase SRM solutions are presented with a bewildering array of options.

However, the report identifies a number of issues that incumbents and emerging SRM vendors must deal with to ensure success. First, SRM tools are currently seen as tactical rather than strategic, making it difficult to attract the attention of senior management. Second, by highlighting the deficiencies of the storage environment, SRM tools can be viewed as actually adding to management complexity -- in essence, they highlight new problems when managers and administrators already have enough to contend with. Third, SRM isn't yet seen as a 'must have,' rather than a 'nice to have.'

"The amount of data that organizations generate continues to grow at unprecedented levels while IT budgets are at best flat. Whether organizations admit it yet or not, storage management must be viewed as a strategic priority," said Simon Robinson, lead analyst on the report. "The reality is that few organizations have in place the tools and processes that allow them to effectively monitor, report and manage their entire storage environment from a single, centralized perspective.

"At the very least, SRM tools can help organizations better understand what is happening in their storage environments, so they can more effectively achieve their main priorities, such as guaranteeing application availability. In addition, SRM tools can help companies plan future storage requirements with greater precision, as well as eliminate some of the tedious, repetitive and time-consuming operations, which could free up administrators to concentrate on more important tasks. SRM solutions can take companies a step closer to the dream of running storage as a utility. However, all players in this space have plenty to do to highlight these clear and demonstrable benefits to users, particularly in the challenging economic climate."

Key findings from the report include:

-- Although the SRM market has experienced some consolidation to date, larger vendors still have gaps in their strategy to fill. This, combined with the tough economy, means there will be plenty more M&A activity in the months ahead.

-- Vendors are shifting their offerings from individual point products that provide SRM functions for specific platforms to a more heterogeneous set of tools that can run on multiple operating systems and address the wider IT infrastructure.

-- In addition to support for multiple platforms and devices, other key elements of successful SRM solutions include ease of use and implementation, robust functionality, scalability and flexibility. Cost is an important consideration, but proving a clear ROI is essential.

-- In the shorter term, dedicated SRM companies will experience the fastest growth, although some still have to build up a base of solid reference customers.

About the451:

The451 is a leading analyst company focused on the technology, communications and media industries.

Companies in these industries and related services have come to rely on the451 to provide them with timely analysis and intelligence from an original and challenging perspective.

The451's team of analysts produces timely News Analysis and in-depth, custom and targeted Reports that identify and analyze technology trends. Key analysts also regularly provide consulting advice to member companies.

The aim of the451 is to explain the significance of key industry events, technical developments and business models to an audience of business-critical decision makers. They need more depth than is found in rapidly produced news, but don't have time to plow through vast reports to find the one piece of information that can make the difference between a good and bad decision.

Founded in December 1999 and launched in April 2000 by a team of analysts, journalists and sales and marketing experts, the451 has successfully grown a significant client base of technology and financial services companies and corporate end users.

Based in New York and San Francisco, with analysts in London, the451 delivers its analysis via the Internet, wireless and PDA services, Bloomberg terminals and the Multex service.

For general or editorial information please contact simon.robinson@the451.com or steve.wallage@the451.com

For more details about the report please contact:

In the US:         Simon Carruthers at simon.carruthers@the451.com
            Tel: +1 212 505 3030 extension 103

In the rest of the world:   sales@the451.com or euromembers@the451.com