As reported briefly in June (CI No 1,437), Candle Corp has acquired Houston-based CDB Software Inc’s DB2 toolset in a move that takes the Los Angeles company beyond its traditional performance monitoring market and into database maintenance tools. The main reason for the move, according to the Gartner Group was that Candle would be unable […]
As reported briefly in June (CI No 1,437), Candle Corp has acquired Houston-based CDB Software Inc’s DB2 toolset in a move that takes the Los Angeles company beyond its traditional performance monitoring market and into database maintenance tools. The main reason for the move, according to the Gartner Group was that Candle would be unable to maintain a bottom-line 25% revenue growth rate as its current markets mature. This, however, is not the gloss that Candle is putting on the strategy. UK managing director Bill MacDonald says that in the UK there are more MVS sites than ever, and that Candle owns 43% of this market with its Omegamon MVS product. He says the market for performance monitoring is not getting smaller. However, for whatever reason, Candle was looking out for possible acquisitions and CDB is a well-respected player in the DB2 toolset market but was lacking marketing power. Under the terms of the agreement Candle has acquired CDB’s entire portfolio of six products which will now be distributed with a Candle logo and for the maintenance and support of which Candle will now be responsible. CDB will, however, remain an independent company on the under-standing that Candle has the first right of refusal to market any new products that CDB develops. The companies have also agreed to a long-term non-compete agreement. CDB will receive an estimated $25m under the agreement from royalty payments. MacDonald recognises that companies offering software for systems management and perfor-mance monitoring are having a little bit of trouble carrying out credible diversification strategies. Indeed, it seems odd that say Systems Center should be selling off its DB2 product line (CI No 1,527), as Candle enters the DB2 toolset market in a big way. MacDonald believes that some companies are rushing into new areas without researching their sales resources and market credibility in these areas. Naturally enough, this is not a trap into which he thinks Candle is likely to fall. This is largely because Candle has managed to recruit Ed Wrazen to lead its drive into the DB2 market. Wrazen was previously a senior consultant for Codd & Date, specialising in DB2. He will be providing technical and managerial consultancy and will educate Candle’s workforce on the vagaries of DB2 and the salient features of their new product set. MacDonald estimates that there are 5,500 DB2 licences worldwide, of which around 1,500 are at the production stage. Of these about 1,000 have the Omegamon DB2 product and these are the sites which will be interested in the new DB2 tools. MacDonald says that database administrators have already been telling him that a performance product for DB2 is not good enough, since they are also concerned with how applications access the database via SQL and so on. The main product among the newly acquired products is DB2-Workbench which provides catalogue management via a snapshot of catalogue contents and comprehensive on-line views of all DB2 objects. It uses a snapshot taken after the overnight run and update which can be manipulated by the database administrator to do a what if analysis during the day. Other products include DB2 Spaceman which tells the user where there are areas of wasted space within a database, DB2 SMU which interfaces with Spaceman, generating utilities, taking image copies and so on, DB2 DASD which looks at all the disks assigned to DB2, DB2 Migrator which automates the migration of an application from test to production or from site to site, and DB2 Explain which gives an analysis of SQL and suggests more efficient methods of coding queries. The Gartner Group believes that revenue from this tool set will rise from $4m in 1989 to bring in over $56m in sales for Candle in 1994.