There are two primary classes of database management systems -- "Low-IT" and
large enterprise -- and the most effective IT organizations
understand the place of both. The past decade has shown that enterprise
databases cannot effectively serve the needs of Low-IT users as well as
databases designed to meet Low-IT needs. Instead, SMBs (small-to-medium-sized
businesses) and their ISVs (independent software vendors) now typically use
Low-IT databases for their business-critical applications, and larger
organizations often complement their enterprise databases with one or more
Low-IT databases at the individual, workgroup, department, local office, and
even divisional level.
The last six years, since the Internet bubble collapse, have shown the
durability and importance of the Low-IT market. While enterprise database
vendors have seen their revenues decreasing dramatically (until recently), the SMB
market has fueled a steady expansion of Low-IT vendors' revenues and profits.
Put simply, not only do SMB users like Low-IT databases, Low-IT databases are
now penetrating higher in larger enterprises and ISVs.
This commentary examines the needs of Low-IT users, how databases can meet these
needs, and how IBM's DB2 Express is proving itself to be a highly useful
alternative in the Low-IT market.
The Nature of Low-IT Users
"Low-IT" organizations are users -- both SMB (small to medium-sized business) and
workgroup/department -- that aim primarily to minimize both the cost and the
complexity of IT -- often to the point of demanding that their computing
architecture be entirely manageable by non-technical personnel on their off
hours. Moreover, these users now understand that the enterprise database that
some consultants and data-center experts reflexively recommend is not
appropriate for achieving Low IT -- they are by their nature too complex, too
expert-intensive, and too costly (in cost of ownership terms).
A related type of user (sometimes included in the Low-IT category) is the
"high-flexibility" organization. High-flexibility firms -- which can range from
a workgroup to a large enterprise -- value above all the ability to innovate and
upgrade rapidly, with low license costs. In order to do this, the
"high-flexibility" organization seeks to tap into the rapid-development,
low-cost characteristics of the open source movement. In particular, the
"high-flexibility" organization uses open source databases as the core of
scalable, open applications. Research by Infostructure Associates personnel
shows that open-source database users form a distinct niche in the market, that
these number in the tens of millions, and that open-source databases are "ready
for prime time" -- that is, they are scalable, robust, and powerful enough to
support many of today's large enterprise applications. Table 1 shows some of the key database characteristics that these organizations
seek.
Table 1: Characteristics of key database types
|
Organization Type
|
Administrative Effort
|
Flexibility
|
License Cost
|
|
Low-IT
|
"Very
low touch" — non-technical user can handle
|
Medium
to high — relatively easy to incorporate new
technology
|
Low to
medium
|
|
High-flexibility
|
"Medium
touch"
|
High —
use open source communities and/or software
|
Low —
use open source license and some services
|
|
Large-Enterprise
|
"High
touch" — requires careful tuning for
optimal performance and scalability
|
High —
use open source communities and/or software
|
Medium
to high
|
Low-IT and High-Flexibility Buyer Types and Criteria
Low-IT users are usually of one of three types:
- Local SMBs with 10-200 end users using one or a few local servers.
- Local workgroups or departments in larger enterprises, with 10-100 end users
per workgroup using one or a few local servers.
- Mass-deployment architectures, with multiple workgroups in multiple
localities using one local server which may feed back to a central server.
All of these are more apt to implement packaged applications from vertical ISVs
rather than enterprise-packaged applications or in-house-developed ones.
Mass-deployment architectures, in turn, are typically of one of two types:
- A centralized copy of the application and embedded database, accessed
remotely by desktop and mobile clients.
- Multiple copies of the application and database, each at a locality, with
replication-style synchronization with a central database.
High-flexibility organizations may include SMBs, workgroups/departments, ISVs,
and large enterprises; but all seek to develop new, scalable applications
rapidly, at low cost.
The demands of today's Low-IT and high-flexibility organization require that IT
buyers place a different emphasis on Infostructure Associates' usual criteria
for databases (scalability, flexibility [including open support of standards],
robustness, and programmer productivity). In the Low-IT case:
- The Low-IT user need only scale so far, and therefore places a higher
emphasis on performance (or rapid response to users) in a typical user load.
- By flexibility, the Low-IT user is apt to mean ease of customization and
upgrade, rather than openness to a wide variety of hardware and software.
- By robustness, the Low-IT user is likely to mean ease of administration,
preferably by non-technical personnel, rather than just staying running 7x24.
- Again, programmer productivity means that the ISV (independent software
vendor) that delivers an application can rapidly create and deploy new versions,
and the user can customize them easily, rather than the user writing the
application themselves.
- Other key considerations are security and total cost of ownership (TCO).
The high-flexibility organization emphasizes:
- Higher scalability than the Low-IT user.
- Open-source support to achieve both openness to a wide variety of hardware and
software and ease of new-application development.
- High availability in Web situations.
- Low license costs for rapid project startup.
IBM DB2 UDB Express Edition and DB2 Express-C
Buyers of DB2 UDB (the Linux/UNIX/Windows version) can choose from several
editions: DB2 Personal Developer's Edition, Data Warehouse Editions (including
data-warehouse administration, query management, data mining, and analytic
features such as DB2 Cube Views), Universal Developer's Edition, Personal
Edition, Workgroup Server Edition, Workgroup Server Unlimited Edition,
Enterprise Server Edition, and DB2 UDB Express Edition (part of IBM's
medium-sized business initiative, with enhanced automation of installation and
administration). Express Edition is a pared-down, smaller-footprint version of
DB2 UDB, but includes many of its key features, including Extenders and
replication. Express-C is an open source version of Express Edition that does
not include Extenders or replication. Express Edition is especially suited for
Low-IT users, and Express-C, with its open-source credentials, for
high-flexibility users.
Infostructure Associates interviewees give DB2 UDB Express Edition high marks
for key Low-IT criteria such as ease of administration, performance in
small-scale situations, programmer productivity for Java developers, and its
ability to deliver DB2 UDB's security and robustness. In fact, some compare
Express Edition to Pervasive Software's Pervasive.SQL in its ability to create
and maintain embedded software.
Outlook for the Low-IT Market
Table 2 shows Infostructure Associates' database market revenue breakdowns by
size of customer. The categories are defined as follows:
- High -- enterprise with more than $75 million in revenues.
- Medium -- $25 million to 75 million in revenues (also includes revenues from
use of a database strictly at the workgroup or departmental level within a
larger organization).
- Low -- an SMB with less than $25 million in revenues.
Low-IT users comprise most of the Low and part of the Medium category -- about 25
% of the market. We anticipate some increase in percentage of revenues from
Low-IT markets over the next two years, as IBM's push into those markets with
DB2 Express Edition is showing some signs of success.
Table 2: Database User Size and Market Share (of Overall Database Revenues)
|
Size of Database User
|
High
|
Medium
|
Low
|
|
Market Share
|
50%
|
30%
|
20%
|
Conclusions
No vendor -- not Oracle, nor IBM, nor Microsoft -- can dominate the database
market with an enterprise database, because today's Low-IT and related
high-flexibility users demand a database tuned for their needs. IBM is showing
encouraging signs that it recognizes the particular needs of Low-IT users and is
responding to them with services aimed at SMBs, with a solution clearly
separated from its enterprise database, and with more-equal visibility for DB2
Express Edition and Express-C. These products, in turn, are demonstrating a
good fit with Low-IT and high-flexibility users' needs, according to initial
interviewees.
Of course, IBM is also competing with well-established vendors in the Low-IT
space, ranging from Progress Software and Intersystems to Pervasive, FileMaker,
and Sybase iAnywhere -- not to mention the open-source database MySQL. Facing
these, IBM differentiates Express Edition and Express-C by its effective
integration with enterprise databases, and especially with DB2 UDB. Thus, users
who seek to leverage today's trend towards Low-IT database use across all types
of enterprise should consider either DB2 UDB Express Edition or Express-C by
themselves, or these products as part of a DB2 UDB-centered overall
architecture.
About Infostructure Associates
Infostructure Associates is an affiliate of Valley View Ventures that aims to
provide thought leadership and sound advice to both vendors and users of
information technology. This document is the result of Infostructure Associates
sponsored research. Infostructure Associates believes that its findings are
objective and represent the best analysis available at the time of publication.
This document is subject to copyright. No part of this publication may be
reproduced by any method whatsoever without the prior written consent of
Infostructure Associates. All trademarks are the property of their respective
owners. While every care has been taken during the preparation of this document
to ensure accurate information, the publishers cannot accept responsibility for
any errors or omissions.
