Filing Information: December 2007, IDC #209965, Volume: 1, Tab: Markets Information Management and Data Integration Software: Competitive Analysis

C O M P E T I T I V E A N A L Y S I S

W o r l d w i d e R D B M S 2 0 0 6 V e n d o r An a l y s i s : T o p 1 0 V e n d o r L i c e n s e R e v e n u e b y O p e r a t i n g E n v i r o n m e n t a n d 2 0 0 7 Y e a r i n R e v i e w

Carl W. Olofson

I D C O P I N I O N

The relational database management systems (RDBMS) market showed fairly strong growth in 2006, and is likely to finish in the double digits in 2007. Most of the top 10 vendors are benefiting from this surge. What's behind it? Is it sustainable? While exegetical factors such as international uncertainty, a slowing economy, and other threats to the health of businesses may conspire to interrupt this expansion, it seems that setting these factors aside:

! The RDBMS market shows signs of sustained high growth.

! Interest in RDBMS seems to be fueled by increasing interest in high availability, disaster recovery, and better-quality data.

! Maturing concepts of enterprise governance have also helped drive data governance, and boosted adoption of initiatives such as master data management.

! The desire for more, better, business intelligence, including "real time" analytic data, are also helping to drive interest in RDBMS.

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©2007 IDC #209965 1

I N T H I S S T U D Y

This study considers the apparent performance of the relational database management systems (RDBMS) market in 2007, and provides detailed analysis of the license revenue underlying the RDBMS market results for 2006 as they were reported in Worldwide Database Management Systems 2007�2011 Forecast and 2006 Vendor Shares (IDC #209611, November 2007). It contains a detailed examination of the performance of the top 10 RDBMS vendors in relation to their market as a whole. It also contains competitive analysis of those vendors, including their performance in terms of license revenue by platform for each of the following major operating environments:

! Unix

! Microsoft Windows (32 and 64 bit)

! Linux

! Mainframe

Please note that, unlike other documents in this service that report revenue for all major vendors in the market and report in terms of total software revenue, which blends license and license maintenance revenue together, this study separates license revenue from maintenance revenue and reports them by operating environment.

M e t h o d o l o g y

Total Packaged Software Revenue

The IDC software market sizing and forecasts are presented in terms of "packaged software revenue." Packaged software is defined as programs or codesets of any type commercially available through sale, lease, or rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-to-use packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately as software maintenance. Upgrades may be included in the continuing right of use or may be priced separately.

Packaged software revenue excludes service revenue derived from training, consulting, and systems integration that is separate (or unbundled) from the right-to-use license but includes the implicit value of software included in a service that offers software functionality by a different pricing scheme (e.g., the implicit or stated value of software included in an application service provider's [ASP's] or other hosted software arrangement). It is the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments.

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Software License Revenue

Unlike most other revenue studies that IDC issues regarding software, this one also includes vendor-specific software license revenue by operating environment for the top 10 RDBMS vendors and the top 4 operating environments. Software license revenue represents, exclusively, fees collected by the software manufacturer for the user's right to execute program code, including the code used for a new installation of an RDBMS as a database instance and its associated tools. Also included is code purchased to enhance the functionality of the original base product, which may be delivered as a product feature or as an increase in the licensed system capacity (such as adding users to a named user license or adding CPUs to a per-CPU license).

This study does not include fees that cover the delivery of software fixes or incremental version upgrades, unless the version upgrade is accomplished by "trading in" an old license and purchasing a new one. Note: Most software fixes and version upgrades are delivered in connection with license maintenance agreements, the revenue from which is not included under the software license revenue category.

Method of Data Collection and Modeling

IDC's industry analysts have been measuring and forecasting IT markets for more than 30 years. IDC's software industry analysts have been delivering analysis and prognostications for packaged software markets for more than 25 years.

The actual strategy incorporates information from five different but interrelated sources, as follows:

! Reported and observed trends and financial activity in 2006, as of the end of May 2007, including reported revenue data for public companies trading on North American stock exchanges (CY 1Q06�4Q06 in all cases) (In cases where vendor reports are based on fiscal years that begin on a day other than January 1, calendar year results were calculated based on fiscal reports that cover the period in question.)

! IDC's Software Census interviews (IDC interviews all significant market participants to determine product revenue, revenue demographics, pricing, and other relevant information.)

! Product briefings, press releases, and other publicly available information (IDC's software analysts meet with hundreds of software vendors each year. These briefings provide an opportunity to review current and future product strategies, revenue, shipments, customer bases, target markets, and other key product information.)

! Vendor financial statements and related filings (Although many software vendors are privately held and choose to limit financial disclosures, information from publicly held companies provides a significant benchmark for assessing informal market estimates from private companies. IDC maintains an extensive library of financial and corporate information focused on the IT industry. We further maintain detailed revenue by product area model on more than 1,200 worldwide vendors.)

©2007 IDC #209965 3

! IDC demand-side research (This includes thousands of interviews annually and provides a powerful fifth perspective for assessing competitive performance. IDC's user strategy databases offer a compelling and consistent time-series view of industry trends and developments. Direct conversations with technology buyers provide an invaluable complement to the broader survey-based results.)

! Additional insights regarding the individual top 10 RDBMS vendors, derived from information afforded by personal contact and through further examination of financial reports and presentations through November 2007

To acquire license revenue and platform breakdown data, additional survey and modeling work was required.

Disclaimers

Ultimately, the data presented herein represents IDC's best estimates based on the above data sources as well as reported and observed activity by vendor and further modeling of data that we believe to be true to fill in any information gaps. In addition, please note the following:

! The information contained in this study was derived from the IDC Software Market database as of October 2007.

! All numbers in this document may not be exact due to rounding.

! For more information on IDC's software definitions, see IDC's Software Taxonomy, 2007 (IDC #205437, February 2007).

The Relational Database Management Systems Software Market

The relational database management systems market includes multiuser DBMSs that are primarily organized according to the relational paradigm and that use SQL as the foundational language for data definition and access. Also included are RDBMSs that have been extended to support embedded tables or other nonrelational enhancements or to include extended attribute types (such as graphical, geospatial, and audio) or object-oriented formalisms (such as data encapsulation).

E x e c u t i v e S u m m a r y

So far in 2007, the RDBMS market has shown signs of continued growth, possibly in the double digits. The top 10 vendors have attributed strong growth this past year to the sectors of their businesses that include, or in some cases are dominated by, RDBMS. In 2006 license revenue for the worldwide RDBMS market grew by 13.8% to $9.7 billion, with the growth mainly driven by the top 3 RDBMS vendors, though the full texture of the RDBMS market requires examination of the top 10.

In 2006 license growth was propelled by an increasing use of RDBMS for distributed data management, failover standby databases, and a strong increase in the use of database applications within the small and medium-sized (SMB) segment of the market.

In 2006 license revenue for the worldwide RDBMS market grew by 13.8% to $9.7 billion, with the growth mainlydriven by the top 3 RDBMS vendors, though the full texture of the RDBMS market requires examination of the top 10.

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S I T U AT I O N O V E R V I E W

2 0 0 7 i n R e v i e w

Although 2007 has not yet ended, enough information is available to make some general assertions regarding the year and how it is likely to close. Both Oracle and Microsoft have indicated strong RDBMS growth throughout the year. While it is difficult to be precise until the final figures are in and have been analyzed, it seems clear that both vendors have enjoyed a good year in this market, and will probably post double-digit growth figures. Sybase has also indicated surprisingly strong growth in 2007, and IBM has reported steady increases in this market. All of these factors seem to suggest a general growth trend in 2007 that is benefiting all the leading vendors. Oracle and Microsoft are both growing in the SMB segment. Oracle, IBM, Sybase, and Microsoft are finding new markets in developing regions, especially in Asia/Pacific. Most of the growth for the top vendors has come from sales to existing clients. Often, these customers are expanding database capacity, buying optional enhancements, or acquiring licenses for standby servers.

A n a l y z i n g t h e R D B M S M a r k e t i n 2 0 0 6

Oracle continued to maintain a commanding lead in RDBMS license revenue in 2006. But although Oracle exhibited strong growth from 2005 to 2006 and Microsoft continued its license revenue growth momentum propelled by SQL Server 2005, both IBM and Sybase showed surprising jumps in revenue growth, suggesting that comfortable assumptions about who is growing and who is languishing may not be reliable.

The RDBMS market, as reported in Worldwide Database Management Systems 2007�2011 Forecast and 2006 Vendor Shares (IDC #209611, November 2007), reached $16.4 billion in 2006. Vendors took in $9.7 billion in software license revenues. These revenues, broken down by vendor and operating environment, are shown in Table 1.

To no one's surprise, Oracle remains at the top in terms of license revenue, and Microsoft, although behind IBM in total software revenue, is second in license revenue. Microsoft led in license revenue growth among the top 10, as indicated in Table 2, followed by Oracle and, somewhat surprisingly, Sybase. IBM also posted double-digit growth.

Table 3 shows RDBMS market license revenues broken out by operating environment. Figure 1 shows the same information graphically. Windows and Linux gained share of the RDBMS market in 2006, while all others gave way.

While it is difficult to be precise until the final figures are in and have been analyzed, it seems clear that both vendors have enjoyed a good year in this market, and will probably post double-digit growth figures.

Microsoft led in license revenue growth among the top 10, followed by Oracleand, somewhat surprisingly, Sybase.

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T A B L E 1

W o r l dw i d e R D B M S P r o d u c t R e v en u e b y T o p 1 0 V en d o r a n d O p e r a t i n g E n v i r o n m e n t , 2 0 0 6

Unix Windows NT

Linux/Open Source

Systems Other Entry

Systems Mainframe Systems

Other Server Systems

Total License Revenue Maintenance

Total Software Revenue

Revenue ($M)

Oracle Corp. 1,315.8 1,128.1 741.0 � 6.1 20.1 3,211.0 4,028.8 7,239.8

IBM 537.0 497.1 168.0 � 971.8 200.6 2,374.5 1,108.5 3,483.0

Microsoft � 2,543.2 � � � � 2,543.2 508.6 3,051.9

Sybase 87.0 73.4 38.5 3.1 � � 202.0 387.1 589.1

NCR Teradata 280.7 15.5 � � � � 296.2 143.0 439.2

Progress Software 68.3 73.9 11.6 � � 1.4 155.2 82.3 237.5

SAS Institute 33.9 80.8 3.4 � 77.5 5.7 201.2 41.9 243.1

Fujitsu 41.0 26.8 4.4 � 70.7 � 143.0 53.4 196.4

Hitachi 15.0 3.4 1.5 � 25.0 � 44.9 22.0 66.9

HP � � � � � 45.8 45.8 5.1 50.9

Other 93.1 178.9 2.3 4.1 5.4 229.6 513.4 325.2 838.6

Total 2,471.8 4,621.2 970.6 7.2 1,156.4 503.2 9,730.4 6,706.0 16,436.3

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T A B L E 1

W o r l dw i d e R D B M S P r o d u c t R e v en u e b y T o p 1 0 V en d o r a n d O p e r a t i n g E n v i r o n m e n t , 2 0 0 6

Unix Windows NT

Linux/Open Source

Systems Other Entry

Systems Mainframe Systems

Other Server Systems

Total License Revenue Maintenance

Total Software Revenue

Share (%)

Oracle Corp. 53.2 24.4 76.3 � 0.5 4.0 33.0 60.1 44.0

IBM 21.7 10.8 17.3 � 84.0 39.9 24.4 16.5 21.2

Microsoft � 55.0 � � � � 26.1 7.6 18.6

Sybase 3.5 1.6 4.0 43.0 � � 2.1 5.8 3.6

NCR Teradata 11.4 0.3 � � � � 3.0 2.1 2.7

Progress Software 2.8 1.6 1.2 � � 0.3 1.6 1.2 1.4

SAS Institute 1.4 1.7 0.3 � 6.7 1.1 2.1 0.6 1.5

Fujitsu 1.7 0.6 0.5 � 6.1 � 1.5 0.8 1.2

Hitachi 0.6 0.1 0.2 � 2.2 � 0.5 0.3 0.4

HP � � � � � 9.1 0.5 0.1 0.3

Other 3.8 3.9 0.2 57.0 0.5 45.6 5.3 4.9 5.1

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Category share of total software (%)

15.0 28.1 5.9 0.0 7.0 3.1 59.2 40.8 100.0

Operating environment share of license total (%)

25.4 47.5 10.0 0.1 11.9 5.2 100.0

Source: IDC, 2007

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T A B L E 2

W o r l dw i d e R D B M S S o f t w a r e L i c e n s e R e v en u e b y T o p 1 0 V e n d o r , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Oracle Corp. 2,785.8 32.6 3,211.0 33.0 15.3

Microsoft 2,123.0 24.8 2,543.2 26.1 19.8

IBM 2,107.9 24.7 2,374.5 24.4 12.6

NCR Teradata 279.4 3.3 296.2 3.0 6.0

Sybase 174.1 2.0 202.0 2.1 16.0

SAS Institute 210.0 2.5 201.2 2.1 -4.2

Progress Software 150.7 1.8 155.2 1.6 3.0

Fujitsu 139.4 1.6 143.0 1.5 2.5

HP 51.0 0.6 45.8 0.5 -10.1

Hitachi 49.7 0.6 44.9 0.5 -9.7

Other 477.2 5.6 513.4 5.3 7.6

Total 8,548.3 100.0 9,730.4 100.0 13.8

Source: IDC, 2007

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T A B L E 3

W o r l dw i d e R D B M S S o f t w a r e L i c e n s e R e v en u e b y O p e r a t i n g E n v i r o n m e n t , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Windows NT 3,967.1 46.4 4,621.2 47.5 16.5

Unix 2,272.8 26.6 2,471.8 25.4 8.8

Mainframe systems 1,081.2 12.6 1,156.4 11.9 7.0

Linux/open source systems 733.6 8.6 970.6 10.0 32.3

Other server systems 487.0 5.7 503.2 5.2 3.3

Other entry systems 6.5 0.1 7.2 0.1 10.2

Total 8,548.3 100.0 9,730.4 100.0 13.8

Source: IDC, 2007

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F I G U R E 1

W o r l dw i d e R D B M S S o f t w a r e L i c e n s e R e v en u e S h a r e b y O p e r a t i n g E n v i r o n m e n t , 2 0 0 5 a n d 2 0 0 6

2005

Other (5.8%)

Linux (8.6%)

Mainframe (12.6%)

Unix (26.6%)

Windows (46.4%)

Total = $8.55B

2006

Other (5.2%)

Linux (10.0%)

Mainframe (11.9%)

Unix (25.4%)

Windows (47.5%)

Total = $9.73B

Source: IDC, 2007

T h e R D B M S M a r k e t b y O p e r a t i n g E n v i r o n m e n t

The Unix RDBMS Market

Oracle maintained its share of the RDBMS market on Unix servers, as indicated by Table 4. Most vendors grew revenue on Unix, the total of which increased by 8.8% from 2005 to 2006. IBM gained share in this operating environment.

As Table 5 indicates, Solaris gained a bit of market share within the Unix RDBMS segment.

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T A B L E 4

W o r l dw i d e U n i x R D B M S L i c en s e R e v en u e b y V e n do r , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Oracle Corp. 1,209.8 53.2 1,315.8 53.2 8.8

IBM 463.3 20.4 537.0 21.7 15.9

NCR Teradata 264.6 11.6 280.7 11.4 6.1

Sybase 80.0 3.5 87.0 3.5 8.8

Progress Software 64.1 2.8 68.3 2.8 6.5

Fujitsu 40.0 1.8 41.0 1.7 2.5

SAS Institute 40.5 1.8 33.9 1.4 -16.4

Hitachi 17.2 0.8 15.0 0.6 -12.8

Other 93.1 4.1 93.1 3.8 -0.1

Total 2,272.8 100.0 2,471.8 100.0 8.8

Source: IDC, 2007

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T A B L E 5

W o r l dw i d e U n i x R D B M S L i c en s e R e v en u e b y S o f t w a r e P l a t f o r m , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Solaris 688.0 30.3 759.4 30.7 10.4

AIX/6000 566.0 24.9 619.0 25.0 9.4

HP-UX 494.9 21.8 542.6 22.0 9.6

NCR SVR4 282.0 12.4 299.2 12.1 6.1

Compaq Unix 94.8 4.2 100.8 4.1 6.3

PC-Unix 25.7 1.1 27.3 1.1 6.1

Sequent Dynix 26.9 1.2 29.0 1.2 7.9

DG-UX 12.2 0.5 13.0 0.5 6.8

Pyramid 9.0 0.4 9.2 0.4 2.3

Other 73.3 3.2 72.4 2.9 -1.3

Total 2,272.8 100.0 2,471.8 100.0 8.8

Source: IDC, 2007

The Windows RDBMS Market

Microsoft continued to increase its share of the RDBMS license revenue on Windows, as shown in Table 6. Oracle effectively maintained the second position, while all others lost share, albeit only very slightly.

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T A B L E 6

W o r l dw i d e 3 2 - a n d 6 4 - B i t W i n do w s R D B M S L i c en s e R e v e n u e b y V en d o r , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Microsoft 2,123.0 53.5 2,543.2 55.0 19.8

Oracle Corp. 989.5 24.9 1,128.1 24.4 14.0

IBM 428.0 10.8 497.1 10.8 16.1

SAS Institute 82.3 2.1 80.8 1.7 -1.8

Progress Software 73.6 1.9 73.9 1.6 0.4

Sybase 60.5 1.5 73.4 1.6 21.3

Fujitsu 26.1 0.7 26.8 0.6 2.5

NCR Teradata 14.8 0.4 15.5 0.3 5.0

Hitachi 4.1 0.1 3.4 0.1 -15.9

Other 165.1 4.2 178.9 3.9 8.4

Total 3,967.1 100.0 4,621.2 100.0 16.5

Source: IDC, 2007

The Linux RDBMS Market

Oracle once again increased its large share of the Linux segment of the RDBMS market in 2006, as indicated in Table 7. IBM gained share as well.

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T A B L E 7

W o r l dw i d e L i n u x / O S S R D B M S L i c e n s e R e v e n u e b y V e n do r , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

Oracle Corp. 557.2 75.9 741.0 76.3 33.0

IBM 123.9 16.9 168.0 17.3 35.5

Sybase 31.0 4.2 38.5 4.0 24.4

Progress Software 11.5 1.6 11.6 1.2 0.4

Fujitsu 4.3 0.6 4.4 0.5 2.5

SAS Institute 2.1 0.3 3.4 0.3 60.2

Hitachi 1.6 0.2 1.5 0.2 -6.9

Other 2.1 0.3 2.3 0.2 10.5

Total 733.6 100.0 970.6 100.0 32.3

Source: IDC, 2007

The Mainframe RDBMS Market

IBM, quite naturally, dominates this market, as shown by Table 8. SAS is the only other vendor with significant revenue on IBM's mainframe, and Oracle is the only other top 10 vendor with any measurable revenue on the IBM mainframe. The Japanese vendors Hitachi and Fujitsu have a strong and recurring business with their own RDBMSs on their own mainframe computers in Japan.

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T A B L E 8

W o r l dw i d e M a i n f r a m e R D B M S L i c e n s e R e v e n u e b y V e n do r , 2 0 0 5 a n d 2 0 0 6

2005 2006

Revenue

($M) Share (%) Revenue

($M) Share (%) 2005�2006 Growth (%)

IBM 896.5 82.9 971.8 84.0 8.4

SAS Institute 76.8 7.1 77.5 6.7 0.8

Fujitsu 68.9 6.4 70.7 6.1 2.5

Hitachi 26.9 2.5 25.0 2.2 -6.9

Oracle Corp. 7.0 0.6 6.1 0.5 -13.0

Other 5.1 0.5 5.4 0.5 7.2

Total 1,081.2 100.0 1,156.4 100.0 7.0

Source: IDC, 2007

F U T U R E O U T L O O K

V e n d o r P r o f i l e s

Each of the major vendors has built, or is building, capabilities into its RDBMSs that support such things as "native" XML support and more extensible unstructured data, including content and support (with search), and they are at various stages of sophistication in terms of deployment technology that ensures self-managing, highly scalable, and rapidly recovering databases. What follows is a discussion of key distinctions in their RDBMS product marketing strategies.

Oracle

Oracle continues to enjoy not only market dominance but also continued growth in this market. This growth is due in no small measure to the success of the various branded and priced options that provide better recoverability, security, and efficiency in the database. The company has also enjoyed growth in the SMB space due to the success of the Express Edition and its corresponding push through channel partners. Although this segment is a fairly small part of Oracle's business today, it represents significant growth opportunity for Oracle in the future. Oracle is also growing business through the embedded channel by focusing on ISV and OEM partners that embed Oracle Database in their products. Oracle hopes to also grow sales by geographic expansion, and by leveraging customer relationships built through the range of applications that Oracle offers.

This growth is due in no small measure to the success of the various branded and priced options that provide better recoverability, security, and efficiency in the database.

©2007 IDC #209965 15

IBM

IBM remains the second largest RDBMS vendor mainly due to its substantial mainframe DB2 sales. Despite various "experts" prognosticating to the contrary, IBM has not only maintained this business but steadily grown it. What is less well known among RDBMS market observers is that much of IBM's growth in this market may be attributed to the success of Informix Dynamic Server (IDS). This RDBMS, which many had thought just a stepping stone to IBM's acquiring customers for the distributed system version of DB2, has turned out be quite a growth engine, despite very little promotion by IBM itself. IDS customers, the ISV community that offers products for it, and the many consultants who support it, have been "under the radar" of evangelists for the product, not just ensuring a stable customer base but winning over new customers as well. IBM also derives RDBMS revenue from UniVerse and UniData, the so-called U2 products, which were also acquired with the Informix database technology.

Microsoft

Microsoft SQL Server has shown the most consistently robust growth of all the top 10 vendors over the past five-year period. This product is not only a profit center in its own right but a key element of Microsoft's strategy to achieve greater strategic significance in the enterprise IT environment. Since the introduction of SQL Server 2005, this strategy seems to have been working, as the mix of SQL Server customers appears to be shifting from an SMB-focused group to one that includes more large enterprises, and more significant IT roles within those enterprises.

Sybase

Sybase has enjoyed surprising growth in 2006 and so far in 2007. Some of this growth can be attributed to a surge of maintenance renewals and license upgrades that accompanied the release of ASE 15 in August of 2005. Some of this growth is also due to the sudden popularity of Sybase IQ, which is a product that is designed specifically to provide good performance for complex queries. Growth of SQL Anywhere, with its various related mobility products, has made a measurable contribution to the overall total as well.

Teradata

Despite the expectations held by some that Teradata's business would decline in the face of competition from the big 3 RDBMS vendors and from neophyte data warehouse appliance vendors like Netezza, Teradata continues to grow and compete effectively with the larger vendors in this market. High user satisfaction, a wide range of tools and partners, and a continuing surge in demand for data warehousing have helped fuel this growth. Although listed as NCR Teradata in the tables of this study because they reflect the situation in 2006, Teradata became independent of NCR in 2007.

What is less well known among RDBMS market observers is that much of IBM's growth in this market may be attributed to the success of Informix Dynamic Server (IDS).

Some of this growth is also due to the sudden popularity of Sybase IQ, which is a product that is designed specifically to provide good performance for complex queries.

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Progress Software

Progress sells its OpenEdge RDBMS as part of the OpenEdge Platform, a suite of development and deployment software used by ISVs to develop and deploy their applications. Progress has a long history in this space, and grows as its clients grow.

SAS Institute

SAS sells its RDBMS both stand-alone and as part of various configurations of its various platform product suites. Originally, these focused on data warehousing and business intelligence, but they now include data integration and packages focused on specific vertical industries. Like Teradata, SAS has benefited from continued growth in the area of data warehousing.

Fujitsu

Fujitsu derives most of its revenue from an RDBMS that comes as part of a software bundle on Fujitsu mainframes, which are sold almost exclusively in Japan. This is pretty much a legacy business.

Hitachi

Hitachi also derives most of its revenue from a legacy RDBMS on its Japanese mainframes. Hitachi has been looking to get into the embedded RDBMS space with a very-small-footprint RDBMS called Entier, but it seems this technology has not yet taken off.

HP

HP derives its RDBMS revenue from NonStop SQL, an RDBMS that is part of the fault-tolerant computer system called NonStop that came from Tandem, which had been acquired by Compaq before Compaq was, in turn, acquired by HP.

E S S E N T I AL G U I D A N C E

The strongest drivers for growth in the RDBMS market appear to be the desire for more comprehensive data, the need for assured data availability, and the expansion of the role of business intelligence to the operational level. There has also been strong growth in the SMB segment, in developing geographic regions, and in the embedded channel. Going forward, market observers can expect the following:

! A pitched battle among the top 3 vendors for the hearts and minds of the SMB segment

! Growth in the area of information appliances, with vendors such as IBM and Oracle offering competition to neophytes such as Netezza

! Alliances between RDBMS vendors and data integration vendors, and in some cases acquisitions, that will help create comprehensive information platforms

There has also been strong growth in the SMB segment, in developing geographic regions, and in the embedded channel.

©2007 IDC #209965 17

L E AR N M O R E

R e l a t e d R e s e a r c h

! Worldwide Embedded DBMS 2007�2011 Forecast and 2006 Vendor Shares (IDC #209653, December 2007)

! Worldwide Database Management Systems 2007�2011 Forecast and 2006 Vendor Shares (IDC #209611, November 2007)

! Oracle Database 11g Uses Automation to Target Operational Costs (IDC #207931, July 2007)

! Worldwide Database Development and Management Tools 2007�2011 Forecast and 2006 Vendor Shares (IDC #207532, July 2007)

! Worldwide Data Integration and Access 2006 Vendor Shares (IDC #207485, July 2007)

! Worldwide RDBMS 2006 Vendor Shares: Preliminary Results for the Top 5 Vendors (IDC #206061, April 2007)

! Will Storage Virtualization Become the Peacemaker in the Database Wars? (IDC #206058, March 2007)

! A New Test for an RDBMS to Pass: Introducing TPC-E (IDC #206048, March 2007)

! The Critical Role of Database Archiving in Information Life-Cycle Management (IDC #206046, March 2007)

! IDC's Software Taxonomy, 2007 (IDC #205437, February 2007)

C o p y r i g h t N o t i c e

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Published Under Services: Information Management and Data Integration Software; Database Management Systems and Tools