Prices have increased slowly over the three years to 2014 as more businesses integrated technology into their operations and suppliers raised prices in response to growing demand for DBMSs
Los Angeles, CA (PRWEB) February 16, 2015
Database management systems (DBMSs) have a buyer power score of 3.7 out of 5. The score reflects a moderately beneficial pricing trend for buyers, with steady but slow growth in price in the three years to 2014. Increased demand for data storage and management contributed to price growth, although low volatility has allowed buyers to better plan for future capital investments.
Several factors have boosted demand for DBMSs over the past three years. Growing private investment in computers and software has driven demand for market services and, consequently, prompted suppliers to raise prices. Also, the growing percentage of services conducted online has increased demand as businesses attempt to effectively manage more online data. “Despite fast growth in demand for DBMSs, high competition among major companies has limited. Even so, the high level of market share concentration reduces buyer power overall, because it reduces the number of alternative suppliers that buyers can choose from,” according to IBISWorld business research analyst Andrew Krabeepetcharat. This market’s top suppliers include International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and EMC Corporation.
DBMSs constantly undergo change and suppliers release new features, including additional integration with cloud technology, each year. “Furthermore, switching costs for buyers of DBMSs are high, which reduces buyer power because buyers will incur substantial costs if they are not satisfied with their supplier. The moderate level of buying lead time for DBMS also reduces buyer power due to the extensive planning and coordination required of buyers during the purchase process. However, buyers have some negotiating power due to the high profit margins that suppliers generate and the growing competition among major companies,” Krabeepetcharat says. For more information, visit IBISWorld’s Database Management Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of database management systems (DBMSs). Suppliers develop and distribute database management, storage and remote backup software systems. Operators may also assist in the installation and maintenance of these software systems. Suppliers also engage in the development of middleware, which acts as an intermediary between databases and business analytics software. Suppliers in the market are software publishers as well as large IT companies. This report does not include data processing and hosting services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.