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Enterprise Database Market Maturity
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Relational database technology has become accepted as a core enterprise data processing technology, and relational databases have been deployed by all large corporations. Because of the importance of corporate databases and years of experience in using relational technology, many large corporate IT departments have selected a single DBMS brand as an enterprisewide database standard. Once such a standard has been established and widely deployed within a company, users strongly resist switching brands. Even though an alternative DBMS product may offer advantages for a particular application, or may pioneer a new, useful feature, an announcement by the current vendor that such features are planned for a future release will often forestall the loss of a customer by the established vendor. The trend toward corporate database standards has tended to reinforce and strengthen the market positions of the established major DBMS vendors. In the corporate IT organization, established sales and customer support relationships, deep in-house familiarity with the selected standard product, and multiyear enterprisewide purchase agreements have become more important factors than database technology advantage. With this market dynamic, the large, established players tend to concentrate on growing their business within their existing installed base, instead of attempting to take customers away from competitors.
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One important impact of the trend to corporate DBMS vendor standardization has been a consolidation in the database industry. New startup database vendors tend to pioneer new database technology and to grow by selling it to early adopters. These early adopters have helped to shape the technology and have identified the solution areas where the technology can deliver real benefits. After a few years, when the advantages of the new technology have been demonstrated, the startup vendors are acquired by large, established players. These vendors can bring the new technology into their installed base, and can bring their marketing and sales muscle to bear in an attempt to win business in their competitors accounts. The early 1990s saw this cycle play out with database vendor acquisitions of database tools vendors. In the late 1990s, the cycle repeated with acquisitions of specialized data warehousing vendors and object-relational databases. Oracle and IBM both acquired in-memory database vendors in the middle of the 2000s, and Sun acquired MySQL AG, the largest open source database vendor. Specialized data-warehousing startups appear poised to be the next targets.
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Market Diversity and Segmentation
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Despite the maturing of some parts of the database market (especially the market for corporate enterprise-class database systems), new segments and niches continue to appear. The traditional segmentation of mainframe databases (dominated by IBM), data center databases (dominated by Oracle), and workgroup databases (dominated by Microsoft) has given way to a much more diverse and dynamic segmentation. Market segments that have emerged over the last few years and that have experienced high growth include Data warehousing databases, focused on managing hundreds of terabytes of data or more, such as historical retail purchase data. Business intelligence and online analytic processing (OLAP) databases, focused on carrying out complex analyses of data to discover underlying trends (data mining), allowing organizations to make better business decisions. Mobile databases, in support of mobile workers such as salespeople, support personnel, field service people, consultants, and mobile professionals. Often, these mobile databases are tied back to a centralized database for synchronization. Embedded databases, which operate inside a closed, black box system such as a piece of manufacturing equipment or an automobile s control and entertainment system or a piece of networking equipment. These databases usually have very small footprints and require little or no administration. In-memory databases and database caches, designed for ultrahigh-performance OLTP applications such as securities trading or high-volume e-commerce sites. Clickstream databases, recording the online activity of millions of users click-byclick, so that a web site can be optimized based on actual user behavior. Clustered databases, designed to take advantage of powerful, low-cost servers used in parallel to perform database management tasks with high scalability and reliability. Streaming databases that operate on data in motion, such as data about securities trades, network traffic, or banking transactions as it passes by on a network.
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