Two reports detail the growth of the database and worldwide software storage markets, driven by strong growth in the SMB segment and enterprises looking to host heterogeneous IT environments.
Posted Jun 15, 2007
Oracle maintained a healthy lead over rivals IBM and Microsoft in the market for relational database management system (RDBMS) software, but Microsoft posted faster sales growth in 2006, according to a report from IDC. The report, which IDC said is based on preliminary data, found that the RDBMS software market grew 14.3 percent last year to $16.5 billion--impressive for a market many industry pundits once considered to be slow growing.
Oracle's RDBMS software license sales grew 14.7 percent in 2006 to more than $7.3 billion, giving it a 44.4 percent share of the total market. IBM retained second place with 21 percent of the market, as its DB2 database license sales increased 11.9 percent to $3.5 billion in 2006. Microsoft, nipping at IBM's heels, again grew the most. The software giant, which now commands 18.6 percent of the market, saw license sales of its database products increase 25 percent to nearly $3.1 billion, and gained strength with its SQL Server 2005 offering in the enterprise segment. By growing slower than the market average, IBM's market share actually dipped last year, while Oracle and Microsoft captured bigger slices of the database market pie.
IDC analyst and report author Carl Olofson attributed Oracle's solid sales to strong acceptance of its 10g R2 database release, certain software features in R2, and new penetration into the SMB segment. Oracle has been making a big push into enterprise applications in recent years, especially with its acquisitions of PeopleSoft and Siebel Systems; Hardie said application sales are a big driver for the Oracle 10g database software. He also said Oracle has accelerated sales of its database products to small and midsize businesses. IDC noted that increased license fees tied to processor-related upgrades also boosted Oracle's revenue.
Sybase and NCR Teradata came in fourth and fifth, with 3.2 and 2.8 percent of the total database market, respectively. Small vendors, including open source provider MySQL AB, accounted for almost 10 percent of the market in 2006.
Olofson attributes the $2 billion license revenue growth from 2005 to 2006 to large vendors exploiting new markets in the Asia-Pacific region in addition to selling their hardware and add-on features to smaller businesses. Olofson says that while Oracle, IBM, and Microsoft command more than 80 percent of the market, Sybase, NCR Teradata, MySQL, and others should continue to develop "indirect strategies to sell in a market dominated by these three."
IDC does not include nonrelational database sales in its market numbers, which diminishes IBM's numbers given that it does a healthy business in selling legacy database software for its mainframes. Gartner, which has not released its accounting of the 2006 database market yet, includes those sales, giving IBM bigger sales numbers and a market share much closer to Oracle. The IDC report said IBM reported "substantial net increases in new DB2 sites and users across the board."
In a related study, IDC found that the worldwide storage software market experienced its fourteenth consecutive quarter of year-over-year growth in the first quarter of 2007, according to its "Worldwide Quarterly Storage Software Tracker" report. Total storage software revenues in the quarter were $2.7 billion, an 11.4 percent increase over the same quarter a year ago, IDC said on Wednesday.
Storage software continues to exhibit positive year-over-year performance, driven by growth in the archiving, replication, and file system software markets, and a surge in demand for storage management software, according to the report. Businesses continue to implement solutions that can improve availability, recovery, and information access across heterogeneous environments, such as those IT environments with multiple delivery models, the report says.
EMC has led the overall market this quarter with 25.1 percent revenue share in the first quarter of 2007, IDC said. Symantec has taken the second position with 17.7 percent revenue share, while IBM finished in the third position with 12.3 percent revenue share, IDC said. Network Appliance finished in the fourth position with 10.0 percent share, while CA and Hewlett-Packard rounded out the top five in a statistical tie both with 4.4 percent revenue share.
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