Andy on Enterprise Software

Appliances are proving popular

February 27, 2007

There is a useful overview of the growing appliance market in Computer Business Review:

http://www.cbronline.com/article_cbr.asp?guid=9104551D-56C1-4EE7-BDF9-BD219E8685BF

The appliance market is nothing if not growing, with no fewer than ten appliance vendors now identified by analyst Madan Sheina (who by the way, is one of the smarter analysts out there). Of course apart from Teradata many of these are small or very new. Teradata accounts for about USD 1 billion in total revenue (the accounts will become much clearer once they separate from NCR) though this includes services and support, not just licences. The next largest vendor is Netezza, who does not publish their revenue (though I would estimate over USD 50M). Kognitio used to be around USD 5M in revenue, though they seemed perky when I last spoke to them so may be a little bigger now. DataAllegro will certainly be smaller than Netezza, as will be the other new players. It is too early to say how well HP’s Neoview appliance will do, though clearly HP has plenty of brand and channel clout, especially now that it has acquired Knightsbridge.

Still, so many entrants to a market certainly tell you that plenty of people feel that money can be made. So far Teradata and Netezza have had the field pretty much to themselves, but the entrance of HP and the various newer vendors will create greater competition, which ultimately can only be of benefit to customers.

1 comment so far

[…] I must admit that with my background in enterprise architecture at Shell I underestimated how much of a market there has been for specialist databases, assuming that the innate conservatism of corporate buyers would make it very hard for specialsit database vendors. Initially I was proved right, with attempts like Red Brick flickering but quickly becoming subsumed, while object databases were clearly not going to take off. With such false starts it was easy to extrapolate and assume that the relational vendors would simply win out and leave no room for innovation. However to take the area of data warehousing, this has clearly not been the case. Teradata blazed the trail of a proprietary database superior in data warehouse performance to Oracle etc, and now Netezza and a host of smaller start-ups are themselves snapping at Teradata’s heels. The in-memory crowd are also doing well, with for example Qliktech now being the fastest growing BI vendors by a long way, thanks to its in-memory database approach. Certainly Stonebraker is right about text – companies like Fast and their competitors would not dream of using relational databases to build their text search applications, an area where Oracle et al never really got it right at all. […]



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