Sybase reports a 15 percent increase in revenue from database licenses on the strength of the success of its Adaptive Server Enterprise and Sybase IQ. However, with long-term partner Sun Microsystems taking a hit in the market, some ask whether Sybase will be affected.
saw its database business pick up steam in the third quarter of 2008
to the tune of a 15 percent year-over-year increase.
The increase was just one part of the good news for the quarter for Sybase,
which saw an 11 percent revenue bump overall. In real numbers, total revenue
for the third quarter of 2008 increased to $284 million from $255.3 million at
the same point last year. License revenue grew to $92.9 million from $85.1
million year-over-year, while services jumped to $146.3 million from $135.8
million a year ago. Messaging revenue increased from roughly $10 million to
$44.7 million, a jump of 30 percent.
"We've got the install base real interested in upgrading and moving on
to [Adaptive Server Enterprise] 15 and buying options," said Sybase CEO
John Chen. "The other part is [Sybase IQ]. A lot of the IQ [users] actually
come from new customers, brand-new customers to Sybase."
Chen has said previously the relational database
market has been decided-a sentiment that seems to be true, as Sybase still sits behind Oracle, IBM
in market share. The clustering technology added to ASE
(Adaptive Server Enterprise) as well as other functionality has the company
holding its position, Gartner analyst Donald Feinberg said.
"IQ competes very well now positioned as an analytic server,"
Feinberg said. "Column DBMSes have great performance for analytics. IQ is
the most mature and widely installed column DBMS on the market."
Click here to read more about how Sybase's investments in database technology seem to be paying off.
However Sybase's good news was not shared by Sun Microsystems, one of
Sybase's long-time partners. Oct. 20, Sun reported it was expecting a loss
for the first quarter of fiscal year 2009, which ended Sept. 28. Its stock
dipped today, Oct. 21, in response.
Sybase and Sun have worked together for more than 20 years; when ASE
Cluster Edition was first released in February, 64-bit Solaris was the first Unix
operating system to be supported.
Still, Chen said he was not overly concerned with how Sun's reported $369
million loss would affect his company's business.
"In the beginning of times of the database
market, the Unix technology was very important to winning or losing
deals," Chen said. "Obviously we're a big partner with Sun. We
started a lot of business with Sun and we're continuing a lot of business with
Sun. Their loss is never good news for us. But, that said, our products run on
HP [Hewlett-Packard] and IBM and Dell, on all the Intel boxes, so it's not really
something [where] we tie ourselves completely to one versus the other."