Tuesday, May 1, 2007

DB2 is Open for business!

The news of the yearly subscription opens new business models for DB2. DB2 Express-C is a free database without any limits in database size. I could go on and on about how many free database offerings limit your deployments, but I won’t. Let’s focus on the opportunities that are now presented with this news in DB2:

1) Emulate Open Source business model without actually being open source
2) Enabling solutions in the form of software as a service with enterprise technology without enterprise price.
3) Reach smaller businesses in an affordable fashion


For years, many open source companies circulate technology for free in the hopes that someone finds it useful. People use open source software for what it does rather than whether they can see source. In fact, most people with an open source database do not touch the source or even look at it. The more complex the software; the less likely someone wants to actually see the source. Does it matter to be an “Open Source Database” technology? Not really. Does it matter that it is free: absolutely! Open Source business model describes the need for people to be able to trial/circulate the software. Once the solution is considered useful and viable, the next step is acquiring a supported environment. This step is paramount to the open source business model. The DB2 Express-C 12 Months License and Subscription enables this business model for DB2 customers! Enterprise feature set with open source business model is very compelling.

Expensive support costs and expensive licenses are prohibitive for the Software as a Service business model. The SaaS model is a derivative of the open source business model in that you are paying for a service rather than software and reduces cost of ownership. So it makes sense that with DB2 Express-C 12 Months License and Subscription enables the SaaS business format as well. Many companies of course care where you put your data in this type of service. What would be safer then DB2. Additionally, the DB2 Express-C 12 Months License and Subscription includes high-availability and replication which is also key to Software as a Service offerings as up-time is a crucial factor for this business model! Additionally, IBM offers companies a means to get started with SaaS hosting. Now you can on-ramp your killer App to the SaaS business model with DB2 Express-C.

Together with these models, software companies can reach new users with the safety net of IBM and feature set of DB2. This announcement opens many doors to new business models and markets for IBM DB2 partners.