Oracle fights hard to protect market share

In the coming year, Oracle plans to follow a two-pronged strategy vis-à-vis its database software in India. The first of these would be to develop a complete end-to-end solution with a single architecture around its database, a move which looks like an attempt to counter growing competition from IBM, which is marketing its entire e-business suite around its DB2 database. The second would be to sustain and consolidate its position as the preferred backend for most corporates, an obvious move to quell Microsoft’s claim that its SQL Server is the preferred database for Windows.

Oracle’s e-business suite is already based around its database, but in 2002 the focus would be on the ability to provide decision makers with up-to-date information from across the organisation a concept that it is called Daily Business Close. This would enable companies, even big conglomerates, to monitor their balance sheets on a daily basis and to analyse business data like calls made and deals closed. As for positioning of its database, Unix variants or Linux are the more popular platforms and therefore, despite Microsoft’s marketing claims on SQL Server with Windows, Oracle looks set to maintain its numero uno position even in 2002.

The next version of Oracle’s offering, Oracle9i Release 2 would be released in 2002 with personalisation and wireless support being some of the new options, besides 9iRAC, partitioning, OLAP, data mining, label security, and Enterprise Manager Performance Packs like the Tuning Pack, Diagnostics Pack and the Change Management Pack. It would support 11 Indian languages, which is very essential for e-governance projects and large corporates serving consumers directly. The 5-user Oracle database licence for the standard edition would be available at a list price of less than Rs 72,000, and an unlimited user licence comes at a list price of under Rs 7,20,000 per processor.

As far as marketing strategy is concerned, Oracle and its large partner sales organisation would address the specific requirements of existing users and prospective customers. Another very important community Oracle would be addressing is the large developer base in India. India has the largest Oracle developer base outside the United States. Finally, the large partner base of ISVs (e.g., Infosys, i-flex, TCS, etc.) and SIs (e.g., TCS, CMC, etc) would play a huge role by providing applications and services based on Oracle products to customers.

In the coming year, Oracle would provide the key infrastructure for database applications and Web services. Features like the Oracle Internet File System and Oracle9i Real Application Clusters would change the way individuals and organisations keep their critical information on highly available and robust systems. The database would also become the key repository of critical e-mail data, which can exploit the advantage of high performance that the Oracle database promises.

Oracle is also likely to score over its competitors in 2002 on the security front, an issue that is becoming increasingly pertinent. Says Gaurav Varma, marketing manager for Oracle 9i with Oracle India, “Security of the systems against accidental and intentional breaches is a key concern today. Oracle database has been through 14 security evaluations, whereas Microsoft has done one and IBM has none.” Oracle is also hedging its bets on the cost factor. IDC estimates that 48 percent of IT expenditure goes into services after software and hardware have been paid for. Oracle9i would bring down the cost of integration and maintenance of the system, freeing up money for other improvements.

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Big Blue sees DB2 as key to software strategy

IBM would be looking at DB2 in 2002 not only as an RDBMS, but as the main differentiator in its overall software strategy the WebSphere product portfolio delivering application integration, the newly acquired CrossWorlds product line offering business process integration and DB2 being a core technology for integrating information. This way, IBM expects DB2 market share to go up by nearly 40 percent in 2002.

IBM partners such as Siebel, SAP, PeopleSoft, i2, Ariba and Vignette would play an important role in Big Blue’s go-to-market strategy. IBM is looking at a 65 percent increase in the number of applications built on DB2, with more than 3,700 database applications for Windows NT alone, a serious challenge to Microsoft’s supremacy on Windows. The next version of DB2 will be released around mid-2002. Some of the planned new features in the next version would include enhanced business intelligence and data warehousing capabilities. There is also a new programme called Start Now (for instance, Start Now for business intelligence or Start Now for infrastructure) through business partners that offers a flexible, modular family of solutions targeted at the small and mid-sized business market.

IBM is planning a three-pronged marketing strategy for DB2 in India. These include clearly articulating DB2’s leadership against competitors, promoting sales through global and local ISVs and building ready to offer solutions on DB2 for business partners to take to the market. In addition, IBM would be building skills through universities like VTU, Bangalore; Indraprastha University, Delhi; SNDT, Mumbai; and training centres like Aptech and NIIT. IBM is also going to aggressively work with application developers to build solutions in the main verticals. Currently IBM has partnerships with software solution and application developers like Wipro, Suntech and Smart Chip. Realising that the ERP market is picking up in India in a big way, IBM is also pushing DB2 as the database of choice for any ERP implementation.

Adds Frank Luksic, country executive, Software and Developer Relations, IBM India, “As India Inc braces itself for a host of e-governance initiatives, we would work proactively with central and state governments and make our solutions a part of this revolution. We also see attractive opportunities in business intelligence and content management.”

As part of its strategy, IBM expects to release 30 products this year in the database space which includes version 8.x of Enterprise Content Manager and Version 8.x of DB2 Universal Database (UDB). In line with global trends, IBM’s research centre is working hard on enhancing XML, which is going to be the standard for information integration. IBM is also developing an information infrastructure for managing, analysing and integrating all forms of information. With a focus on verticals like ERP, telecom and e-governance, and a growth rate of 25 percent year-to-year, this year could be the year of reckoning for DB2.

Sybase looks to tap lucrative niches

Focus on verticals and services is the mantra which Sybase India is following to boost revenues. While the database continues to be the major source of revenue for Sybase, the company is also actively looking at opportunities in the services space.

As part of the strategy, Sybase would look at developing solutions that are centred around its database. Explains V T Mathew, country manager, Sybase India, “Our unique solutions will drive growth for our database. In the current year we will continue to focus on verticals like the cellular operator and telecom market where we have a dominant share.”

Sybase, which has already developed applications specifically for disaster management centred around its database, is bullish on this space and feels that there is an exponential opportunity waiting to be tapped, especially in the wake of the 9/11 attacks. Telecom is another sector that Mathew feels would contribute in a big way to Sybase India’s revenues. In the telecom sector, the company has already developed an application that handles functions such as billing, switching and customer care. Going forward, as India Inc braces itself for a telecom revolution, there will be huge opportunities for service providers in the telecom sphere. With a focus on telecom and armed with ready to deploy applications, this could turn out to be a huge opportunity for Sybase. Currently, the company has telecom clients like Airtel and Tata Teleservices. The company is also bullish on the wireless solutions market in which it enjoys a dominant 67 percent market share. The emerging PDA segment is also another sector that Sybase is betting on in a big way in India.

Currently Sybase has development partners like TCG, Polaris, CMC and Financial Technologies. In India, Sybase is looking at tapping niche markets through unique products and solutions. For example, the recent launch of products and solutions from Financial Fusion, a Sybase subsidiary, is aimed at capturing a significant market share in the e-finance segment. Financial Fusion server is a e-finance infrastructure that can integrate institutional e-trading, online banking and brokerage across multiple platforms, currencies and geographies. Unique and focused products like this could drive growth for Sybase in India. The latest version of the database, which is expected to be released at the end of the current year, will be enhanced with security features in keeping in line with its solutions in the sphere of disaster management and security.

Microsoft looks at virgin markets for SQL Server growth

The advantage that SQL Server enjoys because of its Windows pedigree is no secret. But Microsoft is not content with just this advantage and has formulated a series of initiatives, which if successfully implemented could accelerate growth even faster. As part of its strategy, Microsoft is eyeing virgin untapped markets for growth. Explains Daniel Ingitraj, senior marketing manager, Microsoft India, “We believe there are huge opportunities in emerging markets. These areas include the embedded database market and a number of database offerings in the handheld devices market, including phones, data warehousing and XML support. For example, the growth of the handheld market is making a substantial impact on the database industry, causing vendors to release small footprint versions of their databases to provide storage for these devices. In the future, there will be a huge demand for robust replication and synchronisation capabilities between databases on handheld devices and large enterprise databases.” Microsoft is eyeing the embedded database market, which it believes will be a big opportunity.

The next version of SQL Server code named Yukon will be pushed through the same strategy, which has made Microsoft a force to reckon with in the industry. Yukon will focus on supporting XML within the database, tighter integration with Microsoft’s Visual Studio toolbox, and enabling Web services via the inclusion of the .Net Framework and support for the Common Language Runtime. And most importantly, this enables the database to work with more than 20 non-Microsoft programming languages. Among other basic features, Yukon will also offer users load balancing by allowing databases to support its own hard drive, which can reduce network bottlenecks in a major way. As Web services are expected to pick up in a big way, SQL Server, which has native XML support and support for Web services can convert this advantage into a lead.

Since India is a price sensitive market, Microsoft will aggressively push SQL Server with its twin advantages of Windows and price, as the preferred RDBMS brand in terms of value and price. Explains Ingitraj, “We are going to spend considerable resources in educating users on the advantages of using SQL Server. We believe we are going to make a big dent in the market shares of leading players in the RDBMS segment as SQL is available at almost one-third the cost with almost three times the same performance of our competitors.”

Going forward, Microsoft expects SQL to make deeper inroads into the enterprise segment. As a strategy, the focus would be to make SQL Server a dominant force in the lucrative financial services segment and the upcoming telecom segment. Microsoft is also aiming at attaining a leadership position in the data warehousing category, which it believes will drive growth for SQL Server.