IBM and MS advance on Oracle in database market

IBM and MS advance on Oracle in database market

IT buyers once again spent more on Oracle relational and object-relational databases than on similar software from other vendors in 2002, according to preliminary figures from market researcher IDC. But contenders IBM and Microsoft gained ground on Larry Ellison's company.

IDC estimated that IT buyers worldwide spent $US12.9 billion on relational and object-relational databases in 2002. This represented flat growth from 2001.

Oracle nabbed 39.4 per cent of that revenue, or $US5.1 billion, a five per cent revenue decrease from 2001, its second year-on-year revenue drop in a row. IBM came in second with 33.6 per cent ($US4.3 billion), a nine per cent hike, while Microsoft grabbed 11.1 per cent ($US1.4 billion), a 15 per cent increase. Sybase came in fourth, followed by NCR. These five vendors collectively generate about 90 per cent of the market's revenue.

Oracle was hurt by postponements in spending by large clients on large database installations. IBM benefited, in part, from sales to departments within companies, IDC said. Meanwhile, Microsoft, with its relatively lower-cost and easier-to-use databases, dominated the segment of small and medium-size businesses.

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