Database Spending Increases Slow as Sales Cycles Grow

While spending on database management systems grew 10% during 2000, to $8.8 billion, this was far off the 18% growth pace set in 1999, according to Dataquest Inc., a unit of Stamford, CT-based Gartner Inc.

“These numbers clearly show how the economic downturn has started taking its toll on the DBMS software market,” said Colleen Graham, industry analyst for Gartner Dataquest’s Information Management Software group in a statement.

Graham continued, “In 1999, over 51% of the vendors had growth in the double-digits. In 2000, only 35% of vendors are able to make that claim.”

The top three vendors, Oracle, IBM and Microsoft, each increased market share, with Oracle alone now accounting for more than one third of all license revenue. IBM generated just over 30%, and Microsoft made up 14.9%.

Full details are available in the Gartner Dataquest Research Brief “Database Management Systems Software Market Maintains Double-Digit Growth in 2000.”