Market reach tidbits from Netezza’s conference call
I’ve been slow to notice a very useful service being provided by Seeking Alpha, namely transcripts of quarterly earnings conference calls. For example, the Netezza call on August 23 revealed that Netezza sells approximately as many systems per year as it has quota-carrying sales teams. Or maybe it’s closer to 2 sales per team, especially for the more experienced ones. More precisely, the numbers discussed were 6-15 sales per quarter, and 35 sales teams. Average deal size was $2.3 million; based on the earnings press release, that suggests 10-11 deals depending on how much service revenue (if any) was included.
And by the way, if Netezza does 6-15 sales per quarter, and has a much smaller average sale than DATAllegro, and has much more revenue than DATAllegro — well, it’s easy to understand why DATAllegro isn’t exhibiting a very long list of customers.
Keep getting great research about data warehouse appliances and related technologies. Get a FREE subscription by RSS/Atom or e-mail!
Comments
One Response to “Market reach tidbits from Netezza’s conference call”
Leave a Reply
Curt,
Netezza actually did 8 new deals last quarter.
You’re correct in saying that we are generally doing fewer deals at a higher average deal size. You’re also correct in surmising that we are doing less revenue – although I wouldn’t characterize it as Netezza having “much more revenue”, especially when you just consider revenue from new customers.
Netezza’s growth has been flat at 50-60% for quite a while now. In contrast, our revenue growth rate is a multiple of Netezza’s – and it’s being sustained over a period of time. As a result, we’re catching up pretty quickly.
This seems to me a classic case of a first mover on a proprietary platform being challenged by a fast follower on a non-proprietary platform. The advantage of the latter is the ability to bring large partners to bear. In our case, we are partnering closely with EMC & Dell globally and just announced an OEM deal with Bull in Europe. We’re seeing more and more prospects that won’t consider Netezza for these reasons.
Stuart