EMC-Greenplum deal could precede more consolidation

Analysts expect big players to flesh out their data warehousing stacks

EMC's announcement this week of plans to purchase data warehousing vendor Greenplum represents a harbinger of things to come for that market, as well as related areas like BI (business intelligence) and data integration, according to some analysts.

"I see the data warehousing space consolidating this year and next year," said Forrester Research analyst James Kobielus. "The pureplays that have established themselves, have customers, and look like they're innovating, those guys are going to be snatched up."

Multiple factors will drive this acquisition spree. For example, it makes sense for EMC to buy Greenplum because it is already selling "tons of storage into data warehousing deployments everywhere," Kobielus said.

But there's a broader trend at work as well, sparked by Oracle's recent shift toward selling integrated systems with the acquisition of Sun Microsystems, as well as its own entry into the data-warehousing appliance wars, Exadata. "You could see the EMC acquisition of Greenplum being in that same spirit."

Other hardware companies, such as Hewlett-Packard, may be pressured to make similar moves of their own.

HP already has the Neoview data warehousing platform, but it has not seemed to gain much traction since its initial launch a few years ago, according to Kobielus. It's therefore likely HP will make some purchases to "kick-start" its data warehousing play, he said.

Another observer largely echoed Kobielus.

The Greenplum deal "was about a specific approach to data warehousing -- complex analytics across large, often unstructured data, in a virtualized, flexibly provisioned environment," said analyst Merv Adrian of IT Market Strategy, via e-mail. But "every data warehousing player has gaps they can fill. And companies in non-data warehousing spaces may want to come in. EMC was a great example."

Cisco and Dell, to name two, could follow suit, Kobielus said.

Meanwhile, the heat may be on for some of the many smaller data warehousing vendors in the market.

Simply offering faster and cheaper products won't be enough to survive independently in coming years against the larger players, Kobielus said. "To what extent can these data-warehousing appliance vendors build extensive partner ecosystems to team with for customized solutions? That's really the next stage."

Getting acquired is a likely outcome for most of those vendors, suggested analyst Curt Monash of Monash Research.

Companies like Netezza and Aster Data Systems, which have good market momentum and the ability to raise more capital, "all have good reasons for surviving, but even most successful companies eventually get bought," he said.

Other startups that have had a tougher time, such as Kickfire, nonetheless have intriguing technologies that could make them acquisition targets as well, he said.

But Monash is not buying predictions of widespread attempts at soup-to-nuts consolidation in the data warehousing and analytics arena.

"I don't think very many vendors can or want to compete on a full-stack basis with Oracle, Microsoft, IBM or SAP," he said. Moreover, "it is much, much easier to develop a great specialized technology than a great general-purpose one, and that often outweighs the advantages of the economies of scale and the potential integration of a full technology stack."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Oraclebusiness issuesData managementbusiness intelligencesoftwareemcapplicationsgreenplumdata warehousingmergers & acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?