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IBM Servers Dominate as Industry Report Indicates Major Surge in Data Warehousing.

SOMERS, N.Y.--(BUSINESS WIRE)--July 6, 1999--

Technology Managers Facing Massive Internal Demand for Business

Intelligence That Improves Customer Service, Sales and Marketing

Large Servers in Demand

as e-business Fuels Data Explosion

A recently published technology industry report has revealed a surge in demand for data warehouses. According to a new study by META Group, "1999 Data Warehouse Marketing Trends/Opportunities," businesses of all sizes are proceeding at full speed to fund and deploy data warehouse applications.

Moreover, META Group predicts that, by the end of the year, customer growth rates will lead to 30 percent of data warehouse sites exceeding one terabyte of data, the equivalent of nearly 700,000 fully-loaded floppy disks. META Group names servers as the primary beneficiary of this trend, representing 40 percent of revenue in the overall market.

"IBM's excellent showing in the data warehouse server market is a result of its solutions approach and wide selection of scalable platforms which combine to give customers choice and a more rapid return on investment," said Aaron Zornes, executive vice president and director, Application Delivery Strategies, META Group.

Data warehouses combine server and storage hardware, database software and analysis tools to function as central collection points for information on a company's customers, products and all the transactions in between. Demand for data warehouses is being driven by marketers, salespeople, financial analysts and customer service managers across all industries as they prize the results of analysis, or `mining,' performed on the data in the warehouse. These results offer what has come to be known as business intelligence, revealing hidden clues on what products and services to sell, to whom, how, and when.

"Study participants reported a doubling in the size of data warehouses and an increase of 150 percent in budgets," said Zornes. "This year's largest growth area will be the high-end market segment."

IBM's family of servers are named as the dominant choice of customers building data warehouses (1), whether the warehouse serves an entire corporation, or a single department, in which case it is often called a data 'mart.' META Group labels these two categories of data warehouse "Centralized" and "Line of Business."

The study revealed the following market share among leading server vendors: -0-
 Centralized Line of Business

IBM 30% 24%

NCR 6% 1%

Sun 15% 21%

HP 14% 13%


Sales Leads Hinge More on Data Files than Air Miles

Underscoring this trend, IBM today announced its 120-member Terabyte Club, a collection of IBM customers with more than one trillion bytes of data stored in each company's data warehouse. A rarity only two years ago, the terabyte-plus data warehouse is now increasingly common due to rapidly growing investment in business intelligence technology.

"We expect the number of Terabyte Club members to continue to grow and present an enormous opportunity for IBM as companies delve even further into e-business, increasing the volume of data they gather from all customer contact points, including the Internet, point of sale, call centers and other channels," said Ben Barnes, general manager, IBM Global Business Intelligence Solutions. "Right now, companies are doubling their data every 18 months, a rate that means we could be seeing data warehouses with petabytes, or a quadrillion bytes, of information in the future."

The Terabyte Club surpasses the amount of terabyte-plus customers claimed by IBM's closest competitor in the high-end data warehouse market.(2) It includes businesses running on three of IBM's server platforms -- RS/6000, S/390 and AS/400 -- and will soon include customers using its Netfinity line of servers. Many of these same customers are also users of IBM's award-winning DB2 family of data management products.

The Terabyte Club is the latest in a series of efforts by IBM to support the massive movement of customers and industries into the next phase of information-driven e-business. IBM's business intelligence initiative is designed to help customers leverage the data from their core business processes. By capturing all the data generated from enterprise resource planning (ERP), supply chain and e-commerce transactions, IBM is helping customers use that data to improve decision making throughout their organization.

Additional information about IBM can be found on the IBM home page at http://www.ibm.com.

Since 1995, META Group has regularly surveyed attendees of DCI's nationwide Data Warehouse World and Data Warehouse Summit conferences regarding their current and planned data warehouse and data mart activities. META Group's 1999 Data Warehouse Marketing Trends/Opportunities contains in-depth quantitative information on more than 4,000 data warehouse projects in IT organizations residing within Global 2000 businesses. For more information on META Group research, see http://www.metagroup.com.

(1) Measured by META Group's 1999 Data Warehouse Marketing

Trends/Opportunities Report, p. 99.

(2) In a company press release dated February 17, 1999, NCR reported

that it currently had 100 customers with one terabyte of data or

more.

IBM, Netfinity, AS/400, S/390 and RS/6000 are registered

trademarks or trademarks of the IBM corporation in the United

States, other countries, or both. Other company, product and

service names, which may be denoted by a double asterisk (**) may

be trademarks or service marks of others.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jul 6, 1999
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