MS gains in database market

NEW YORK: Microsoft Corp.'s sales of relational database software rose 11 percent in 2003, outpacing growth at the market's two top players, IBM and Oracle Corp., according to a report.

Relational databases link files together as required, enabling ad hoc requests for special data and they account for the vast majority of database software sales. The entire relational database market grew 5.1 percent to $7.0 billion in 2003, after a fall of nearly 6 percent in 2002, according to the study by information technology research firm Gartner Inc.

Oracle's database software sales rose 2.4 percent in 2003 as its market share declined to 32.6 percent from 33.4 percent in 2002, leaving it in the second spot, Gartner said.

Microsoft picked up the difference, growing 11 percent to $1.3 billion and increasing its market share to 18.7 percent from 17.7 percent. Unlike Oracle and IBM, Microsoft's products target small and medium-sized businesses and are cheaper than rival systems. That growth rate was down from 17 percent a year earlier.

International Business Machines Corp. retained the top position, as its market share was flat at 35.7 percent with a growth of 4.9 percent in 2003.

The market for databases on the Linux open source operating system more than doubled to $299 million from $116 million a year earlier. Most of that growth was with Oracle, which had 69 percent of the market and growth of 361 percent. IBM slipped from the top spot in that market to the No. 2 position with 28.5 percent of the market and 27.5 percent growth.

Meanwhile, revenue from sales of database software with the Unix operating system fell 5.9 percent to $2.34 billion and sales with Windows software rose 3.8 percent to $2.79 billion.

© Reuters