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The Data Warehousing Institute Explores Drivers for the Growing Data Warehouse Appliance Market

Originally published November 16, 2005

More data warehouse appliances in corporate data centers result from purpose-built architecture, fast query performance and business value.

The Data Warehousing Institute (TDWI), a provider of business intelligence and data warehousing education and research with over 3,000 members worldwide, recently presented the results of primary research into the adoption of data warehouse appliances. This is a fast-growing segment of the information technology market. TDWI cited Netezza as a trailblazer in the data warehouse appliance market and a contributing factor in the adoption of the appliance model by enterprises in multiple industries. Their Netezza Performance Server system is an enterprise-class data warehouse appliance, integrating database, server and storage within a single system. It stores, filters and processes terabytes of data.

During the TDWI webinar, “The Pros and Cons of Data Warehouse Appliances,” Philip Russom, senior manager of research and services, reported that data warehouse appliances are increasingly implemented by organizations seeking a cost-effective, high-performance platform for data analysis. Russom is a veteran information technology industry analyst who has covered business intelligence and related issues for Forrester Research, Giga Information Group and Hurwitz Group. Russom has also contributed to leading IT trade publications.

Based on findings from its August 2005 Tech Survey, Russom reports that 39 percent of TDWI members who responded are currently using or evaluating a data warehouse appliance for implementation in their data center. With pricing models significantly below traditional data warehouse platforms and measurable performance and simplicity benefits for the end user, more and more organizations are realizing the advantages these purpose-built systems can deliver for achieving business objectives. Additionally, Russom identified one to 10 terabyte data ranges, including data marts and enterprise data warehouses (EDW), to be the main area of opportunity for data warehouse appliances, and sees this growing to the 20 terabyte range in the next couple of years to accommodate exponentially growing data.

“Through our research and regular dialog with TDWI members, it is clear that there is a strong and growing interest in data warehouse appliances. Our Tech Survey results show that appliances are perceived as bringing innovation and business benefits to the data warehouse industry,” said Russom. “TDWI will continue to track the growth of this important new area and report on the real-world experiences of our partners and members as more data warehouse appliances are deployed in enterprise data centers.”

This BeyeNETWORK news item contains information from a recent press release by the company mentioned.