BACKUP IN A VIRTUAL WORLD Data-Protection Challenges in Virtual Server Environments Data protection for virtual environments became crucial when end users began virtualizing tier-one, mission-critical applications a trend that will accelerate rapidly this year. This is leading IT departments to reevaluate their backup/ recovery strategies, implementations and, in some cases, suppliers. IM INFORMATION MANAGEMENT 4 FINDINGS Lack of adequate data protection can be an obstacle in virtualizing mission-critical applications. PAGE 1 Hypervisor-based APIs such as VADP and CBT have, to a degree, leveled the playing field between backup incumbents and VM backup specialists. PAGE 10 The market for virtualization backup and high availability is expected to grow at a 43% CAGR through 2014. PAGE 17 In large part due to virtualization, end users are more willing than ever to switch backup applications and vendors. PAGE 23 5 IMPLICATIONS Virtualization is accelerating ongoing trends toward technologies such as disk-based backup and data de-duplication. PAGE 4 Backup vendors are increasingly reliant on enabling technologies provided by the hypervisor vendors although hypervisor vendors such as VMware pose a competitive threat. PAGE 10 End users are considering alternative data-protection technologies such as array-based snapshots and replication, often in conjunction with traditional backup software. PAGE 15 M&A activity could pick up this year as vendors look to fill the gaps in their data-protection portfolios. PAGE 23 VM backup specialists pose a formidable threat to the marketshare incumbents. PAGE 30 1 BOTTOM LINE As the move toward virtualizing mission-critical applications accelerates, end users should reevaluate their data-protection products, architectures and vendors to ensure adequate backup and recovery in order to meet stringent RPO, RTO and SLA requirements. APRIL 2012
REPORT SNAPSHOT TITLE Backup in a Virtual World ANALYST Dave Simpson, Senior Analyst, Storage RELEASE DATE April 2011 LENGTH 41 pages ABOUT THIS REPORT Data protection for virtual environments came to the forefront of virtualization projects when end users began virtualizing tier-one, mission-critical applications a trend that will accelerate rapidly this year. This is leading to an inflection point where IT departments are reevaluating their backup/recovery strategies, implementations and, in some cases, suppliers. In the vendor community, the goal is to transform data protection from a risk factor to an enabler in the virtualization process. This report examines trends, technologies, market and business factors in the virtualization data-protection market, with the goal of giving guidance that will lead to better backup and recovery strategies in a rapidly changing landscape. It reviews the vendor landscape, VC funding and M&A activity; presents case studies highlighting some of the themes in the report; and provides recommendations for both vendors and end users.
TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY 1 1.1 INTRODUCTION....................... 1 1.2 METHODOLOGY....................... 3 SECTION 2: MARKET IN CONTEXT 4 2.1 THE SHIFT TOWARD VIRTUALIZING MISSION-CRITICAL APPLICATIONS.. 4 Figure 1: Virtualization of Different Workloads............ 4 Figure 2: Predominant Impact for Server Virtualization on Storage..... 6 Figure 3: Drivers of Capacity Growth............... 6 SECTION 3: KEY TRENDS/TECHNOLOGIES 10 3.1 LEVERAGING HYPERVISOR TOOLS AND APIS............ 10 Figure 4: VM Protection.................. 11 Figure 5: Desire for VM Backup Without Agents...........13 3.2 ARRAY-BASED SNAPSHOTS, REPLICATION AND BACKUP SOFTWARE... 15 SECTION 4: MARKET UPDATE 17 4.1 MARKET SIZING & GROWTH................. 17 Figure 6: The Backup and HA Opportunity (Virtual Environments Only).. 17 Figure 7: Total Cloud-Enabling Technologies Revenue Breakdown.... 18 Figure 8: Cloud-Enabling Technologies Lifecycle.......... 19 Figure 9: Backup & HA Revenue by Geography........... 20 Figure 10: Backup & HA Revenue by Segment............20 Figure 11: Backup & HA Revenue by Vertical............21 4.2 FUNDING ACTIVITY...................... 22 Figure 12: Funding for Data-Protection Startups.......... 22 4.3 M&A ACTIVITY...................... 23 Figure 13: 2010 Key Storage Acquisitions.............24 Figure 14: 2011 Key Storage Acquisitions.............24 4.4 POTENTIAL ACQUIRERS.................... 27 4.5 POTENTIAL ACQUISITION TARGETS................ 27 BACKUP IN A VIRTUAL WORLD
4.6 VENDOR LANDSCAPE: RISE OF THE VM BACKUP, DR SPECIALISTS.... 30 Figure 15: Backup Vendors for Virtual Infrastructure........ 30 SECTION 5: EVALUATION CRITERIA 35 SECTION 6: CASE STUDIES 37 6.1 BANK USES DIFFERENT SOFTWARE TO PROTECT VIRTUAL AND PHYSICAL SERVERS.......................... 37 6.2 MEDICAL CENTER STANDARDIZES ON ONE BACKUP APP FOR CENTRALIZED MANAGEMENT...................... 38 6.3 TOP DATA-PROTECTION CRITERION FOR HEALTHCARE PROVIDER: ULTRA- FAST RESTORES....................... 40 SECTION 7: RECOMMENDATIONS 41 INDEX OF COMPANIES 42
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