Email Archiving Market Booming

June 5, 2007: In its latest report on email archiving applications, IDC has found that the market grew by 45 percent in 2006 on the back of increasing compliance and storage optimisation requirements.

The result is hardly surprising considering many businesses are scrambling to get ahead of the email beast and satisfy increasingly important compliance and legal discovery obligations. Due to this, IDC also expects the email archiving applications market to approach US$1.4 billion (AU$1.68B) by 2011, compounding at an annual 23.4 percent.

“The hosted service delivery segment of the market posted surprisingly strong growth in 2006, fueled in part by financial services customers looking to transition their old SEC/NASD compliant archiving solutions into more robust message archiving platform architectures,” said Vivian Tero, senior research analyst for Compliance Infrastructure at IDC.

Tero added that customers are increasingly demanding integrated workflows to support discovery and auditing. This coupled with aggressive reductions in the cost of connectivity and storage combined and rising awareness of new legal obligations is leading growth in the SMB and mid-market segments.

“Email archiving is increasingly fueled by both business and IT requirements for electronic discovery and regulatory compliance as well as performance, capacity, and storage optimisation,” said Laura DuBois, research director for Storage Software at IDC. “We expect over the next five years to see email and other content archiving solutions converge as firms continue to focus on managing information versus infrastructure.”

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