The industry will grow further as it targets underserved markets such as small businesses
New York, NY (PRWEB) March 31, 2014
The Database, Storage and Backup Software Publishing industry performed well over the five years to 2014, thanks to booming corporate profit and private investment in computers and software. Database software serves a key purpose within a firm's information technology infrastructure; the software allows companies to analyze operational data and make more informed decisions about their product offerings. Growing knowledge of the benefits of industry products, including data-protection services through storage and backup software, and low interest rates, which make investment relatively cheap, largely explain the industry's expected annualized revenue growth rate over the five years to 2014; this growth includes an estimated increase in revenue in 2014 alone.
The industry's major players are technology giants that offer numerous products and services, many of which fall out of the industry's scope. These large database vendors view acquisitions as a primary means of expansion. Consequently, the number of industry enterprises contracted at an estimated annualized rate over this period. Examples of acquisition activity include Oracle's 2010 purchase of Sun Microsystems, a pioneer in high-end server manufacturing and owner of the popular open-source database MySQL.
Furthermore, according to IBISWorld Industry Analyst Stephen Hoopes, “IBM recently bought Netezza, and Teradata purchased Aster Data; both acquisition targets were prominent operators in the rapidly growing data warehouse (DW) appliance space, including integrated sets of servers, storage, operating systems and database management systems.” As part of this consolidation, “employment has declined at an estimated annualized rate over the five years to 2014,” says Hoopes. However, the average wage has increased moderately as firms compete for a limited supply of highly skilled labor.
The Database, Storage and Backup Software Publishing industry operates with a high level of market share concentration; in 2014, the four largest firms are estimated to account for a majority of industry revenue. The competitive characteristics of this industry favor a high level of concentration. Over the five years to 2019, DW appliance offerings, especially those accessible entirely over the internet on a subscription basis, are expected to be major growth drivers as the industry reaches out to underserved markets, particularly small businesses. During the period, industry revenue is forecast to rise substantially, increasing at an annualized rate in the five years to 2019. The large players that dominate the industry are anticipated to continue their aggressive acquisition activity, causing the number of enterprises to continue declining, albeit at a slower forecast annualized rate from 2014 to 2019.
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IBISWorld industry Report Key Topics
The Database, Storage & Backup Software Publishing industry develops and distributes database management, storage and remote backup software systems. Operators may also assist in the installation and maintenance of these software systems. This industry also includes the development of middleware, which acts as an intermediary between databases and business analytics software. The industry does not include hardware manufacturing, operating system publishing or business analytics software publishing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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