EnterpriseDB: we will take away “our own piece of cake” of the DBMS market from Oracle!

In late December, Oracle announced a 9% drop in its shares. But this news did not seem surprising to me, because just a couple of days before its appearance, I spoke with Ed Boyana (Ed Boyajian), President and CEO of EnterpriseDB.

Judge for yourself - EnterpriseDB offers a similar DBMS, but the cost of its products is much lower than that of Oracle. Now that everyone is looking for more functional solutions, for less money, Oracle is finding it harder to convince customers to overpay for their software.

It's not hard to understand the power of Oracle. Millions of dollars are spent on DBMS and other software from Oracle, while customers fall into the vendor lock-in trap and switching to other, cheaper software becomes very expensive.
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Thanks to EnterpriseDB products built on the basis of an open PostgreSQL DBMS, IT departments of companies can get away from the need to use Oracle almost painlessly, paying only 10% of what they paid before.

Ed Boyadzhan worked for a long time at Red Hat, a company making money on providing support for open source products. Since he moved to EnterpriseDB in 2008, the company's customer base has grown by 70% per year. According to him, in mid-2008, the company had 200 clients, and by December 2011 this figure had risen to 1,200.

One of the reasons for such rapid growth is that EnterpriseDB has reduced the cost of switching to its products. How? EnterpriseDB has added functionality to its solution that allows it to adapt applications developed for Oracle's DBMS to PostgeSQL. In addition, EnterpriseDB tests and certifies products to ensure their performance. And, like Red Hat, it offers excellent technical support.

Another reason for the rapid growth can be called a fairly effective sales model EnterpriseDB. Instead of having dinners for financial directors and IT managers of large companies, they offer easy downloads and simple work with their software. And the task of sales professionals is to track online download statistics and contact only those companies that have a clear interest in EnterpriseDB products.

The database market is huge and growing rapidly. About 20 of the $ 26 billion accounted for the relational database segment, which grows by 10% per year. This is due to such things as business intelligence, cloud computing and devices with access to corporate data.

However, the DBMS market is controlled by just a few companies. In the hands of Oracle, about 50%, IBM accounts for 21%, and Microsoft accounts for the same. And companies like EnterpriseDB have only about 5%.

But it seems that the situation will change soon. The reason for this is the desire of corporate clients to reduce their costs - after all, the lion’s share of funds goes to the DBMS. Many IT departments are ready to overcome FUD (Fear, Uncertainty, Doubt - fear, uncertainty, doubt), distributed by Oracle sales agents and are thinking about switching to alternative solutions.

In addition to the attractive price, EnterpiseDB offers its users unrivaled quality, excellent performance, scalability, reliability and security. And with the new Postgres Plus Cloud Database, the company is ready to enter the cloud computing market.

Adjusting to the needs of the market, the company itself changes and changes the parameters and characteristics of products. Ed Boyadzhan expects that with Postgres Plus Cloud Database, the EnterpriseDB customer base will become even bigger.

EnterpriseDB did not want to discuss how much money was invested in the company, but noted an interesting feature - EnterpriseDB's largest customers, such as IBM, Red Hat, NTT and Korea Telecom, are also their investors at the same time. And IBM combines the roles of an investor and a competitor to EnterpriseDB simultaneously.

EnterpriseDB employs 125 people in offices around the world, including in the USA, India, Japan, The Hague and London. The company wants to remain independent, as this will give it a huge advantage for growth in India and in Europe. But if the growth of the enterprseDB will continue to be 70% per year, surely one of the investors / clients will buy it in full.