July 25, 2008

Further thoughts on DATAllegro/Microsoft

My first, biggest thought about DATAllegro’s acquisition by Microsoft is “Why the ____ did it have to happen while I was trying to relax on my annual Cayman vacation???” Not coincidentally, I don’t plan to neatly cross-link all my posts and so on about DATAllegro/Microsoft until I get back to Acton this weekend.

One linking screwup is that I previously forgot to mention that — in addition to the numerous posts here — I also made several DATAllegro/Microsoft-related posts on my Network World blog A World of Bytes.  They include:

Also, I’d like to correct an error that’s crept into some of the coverage of the deal, for example InformationWeek’s (quoting Gartner).  Folks, there is no way on Earth that Microsoft is going to continue DATAllegro’s strategy of reselling a single or very limited range of hardware choices as the only way to get its high-end data warehousing software.  Rather, Microsoft is going to have multiple “reference architectures,” covering many hardware, storage, and networking options.  I.e., Microsoft will pursue the data warehouse packaging strategy Oracle is following today, but will do so with much better technology.

Comments

8 Responses to “Further thoughts on DATAllegro/Microsoft”

  1. Stuart Frost on July 25th, 2008 11:54 pm

    Great analysis as usual Curt.

    Sorry about the ‘vacation’ – next time I announce a major acquisition, I’ll check your schedule :)

    Stuart Frost
    CEO, DATAllegro

  2. Curt Monash on July 26th, 2008 2:31 pm

    Stuart,

    You’d better!

    Meanwhile, Linda and I have extended our vacation another week. I hope nobody else gets bought in the mean time …

    Best,

    CAM

  3. Neil Raden on July 26th, 2008 7:19 pm

    I think it was about five years ago, or maybe only four, when Kim Stanick invited me to lunch to meet her new boss, Stuart Frost. I don’t remember my exact words to Stuart, but it went something like, “That’s the dumbest idea I ever heard.” You can’t always pick ‘em, that’s what makes a horse race.

    I proceeded to wax poetic on the future of data warehousing and I could tell by the look on his face that HE thought THAT was the dumbest idea he ever heard.

    I guess the best part of the story is that we’ve both been vindicated. Stuart by the sale to Microsoft and me because my crazy-ass ideas from that time are starting to get some traction.

  4. We’re staying out on vacation another week | The Monash Report on July 28th, 2008 2:33 am

    [...] to what I previously said, I did not come back to Acton this weekend.  Instead, Linda and I are staying on Grand Cayman for [...]

  5. Tom Culler on July 28th, 2008 1:49 pm

    Curt –

    Do you have any thoughts on the idea that Microsoft is at least partially in this to bolster their services division, to compete head-on with IBM and Teradata in the Services arena?

  6. Curt Monash on July 28th, 2008 2:13 pm

    Tom,

    I think the two issues of:

    1. What’s the best/most successful enterprise software suite we can build?

    2. How do we get the most high-margin services revenue out of our enterprise software business?

    are more orthogonal than you were suggesting.

    Microsoft still needs license fee growth, and a story for unlimited upside without their customers hitting a ceiling. I’d think DATAllegro was evaluated by those criteria. Only the total price Microsoft is willing to pay would, I think, be strongly/directly affected by services revenue considerations.

    CAM

  7. andar909 on August 10th, 2008 7:56 pm

    hi, andar here, i just read your post. i like very much. agree to you, sir.

  8. Integrated internet system design | DBMS 2 : DataBase Management System Services on September 7th, 2012 12:44 am

    [...] there isn’t any vacation-busting news; I’ve had some bad luck in that regard before, professionally and personally alike. Categories: About this blog, Business intelligence, Cache, Clustering, Data [...]

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