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Re: Oracle vs DB2

From: Rauf Sarwar <>
Date: 6 Jul 2002 08:14:04 -0700
Message-ID: <>

"R Chin" <> wrote in message news:<ag5ase$l8c$>...
> OK, let's forget about SQL $erver....
> How is DB2 compared to Oracle ? Is it gonna wop Oracle's a** ....? maybe in
> the not too distant future...?
> Personally I am a bit worried for I have been pretty much totally ignored
> others but focusing on Oracle...
> Thanks for your input
> Robert

I don't think Oracle can be dethroned from worldwide database market any time soon...(I certainly hope it does not happen) but it is good not to keep all your eggs in one basket. -:) Read attached article.

Oracle Leads Modern Database Market

ITWeb (Johannesburg)

May 9, 2002
Posted to the web May 9, 2002

Howard Mellet & Associates

Oracle Corp, the world's largest enterprise software company, has issued the following statement regarding this week's release of worldwide database market share numbers. This statement is attributable to Jeff Henley, Oracle's Chief Financial Officer.

Statement: Gartner/Dataquest issued its initial findings on 2001 database market share yesterday. Oracle leads the modern relational database market with 39.8% share, and Oracle's lead on Unix is also strong at 63.3% share. However, the continued focus on the overall database management system (DBMS) market, which includes databases on legacy systems, instead of the modern relational market will continue to fuel misperceptions about Oracle's position vis--vis competitors. Oracle is therefore challenging these misperceptions on several fronts:  

In this time when financial reporting is under scrutiny, it is sadly ironic that the revenue and growth data provided to the industry analysts by the vendors themselves is not independently validated, outside of Oracle's.

Until our major database competitors, IBM and Microsoft, provide audited database financial numbers, the data that makes up these analyst reports is suspect. IBM reports one single audited line item for its $13 billion software business. Similarly, Microsoft reports one audited line item for its Desktop and Enterprise Software and Services business. Oracle is challenging IBM and Microsoft to provide the industry analyst firms with audited numbers so that a fair and accurate comparison can be made.

Oracle has a strong lead in the modern relational database market. This goes largely unnoticed because of the predominant use and reporting of the overall worldwide database number, which represents not just the modern database market but also databases on legacy systems. Only IBM benefits from the use of the overall number: approximately 63% of IBM's database licence revenue comes from databases running on legacy systems, leaving only 37% of IBM's revenue to databases being sold on Unix and Windows NT.

Oracle believes significance should be placed more so on the modern database systems market, comprising Unix, Linux and Windows NT.

Oracle has taken a close look at its database business to assess whether or not outside claims of competitive pressures are valid. Every independent survey we have commissioned or been provided reaffirms that Oracle's database install base is continuing to prefer us over competitors. A recent survey of the Fortune 100 by FactPoint found that Oracle has the strongest penetration of databases in the Fortune 100 over any other competitor - 51% surveyed cited Oracle as their preferred database provider, citing IBM for Unix/NT only 3%.

Competitors also claim that Oracle's competition with ISVs like SAP, PeopleSoft, and Siebel in the applications market has impacted Oracle database sales. Independent data validates that customers, not the ISV, select the database on which run their packaged applications. In the same recent FactPoint survey, results show that Oracle is the database of choice for leading packaged application vendors within the Fortune 100: SAP (78%), PeopleSoft (72%), Siebel (81%), i2 (73%), and Oracle (100%). IBM also talks about a list of 100 Oracle database migrations, but according to members of the financial community who have requested it, the list has never been produced. Oracle, on the other hand, is seeing migration activity from IBM DB2 mainframes to Oracle and from Informix to Oracle.

Harte-Hanks conducted an independent survey of the Informix user base and found that customers planning to migrate from Informix are three times more likely to choose Oracle than IBM DB2. Of those companies that have already migrated, 45% have selected Oracle compared to 13% DB2. Oracle challenges the assumptions that we are losing market share to competitors given independent data and the activities of Oracle's and other vendors' install bases.

Macro economic conditions and reduced IT spending have created the environment in which Oracle and the rest of the industry are operating in today. Additionally, markets Oracle has traditionally or recently sold into have retreated -- telecommunications and the dot-com markets, for example. We continue to believe that the most important measure the market should consider is Oracle's loyal installed base of 200 000 customers. Oracle's strong lead in the modern relational database market and the size and loyalty of Oracle's installed base is the accurate measure of both our mind share and market share. Received on Sat Jul 06 2002 - 10:14:04 CDT

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