Microsoft (NASDAQ: MSFT) announced its close of the acquisition of DATAllegro on September 16th, 2008. With intentions of expanding Microsoft SQL Server using DATAllegro’s technology, its goal is to scale into hundreds of terabytes of data, starting with early access to the new solution in 12 months through Community Technology Previews (CTPs). Full product availability is expected in two years.
With Microsoft’s entry into the BI market, its plan to expand its current database to serve as more of a data warehouse makes perfect sense. Even though SQL Server 2008 is being marketed and used as part of Microsoft’s full BI suite, the fact remains that it doesn’t have the same bandwidth as some other data warehousing options available. Consequently, its acquisition of outside technology becomes strategic when looking to expand market share within BI and be able to compete more broadly with other players in the market.
Even though DATAllegro’s data warehouse appliance is touted to house data volumes of hundreds of terabytes, the fact remains that until Microsoft actually integrates DATAllegro’s technology into its SQL Server environment, there may not be reason to get excited over this acquisition. Taking into account overall feasibility, DATAllegro is a fairly new player in the market with a lack of ability to prove long term agility based on its newness alone. However, if Microsoft is successful at integrating this technology within the given timeframe and develops solution offerings that enable full use of a large-scale data warehousing and other offerings without, they may develop an even wider variety of products giving them access to more market share within business intelligence overall.
In general, with any acquisition, it is always important to take a wait and see approach. However, with Microsoft being a leader in the software industry at large, it is a slight chance that they will do anything but succeed.
About the Author
Lyndsay Wise is an industry analyst for business intelligence. For over seven years, she has assisted clients in business systems analysis, software selection and implementation of enterprise applications. Lyndsay is a monthly columnist for DMReview and conducts research of leading technologies, products and vendors in business intelligence, marketing performance management, master data management, and unstructured data. She can be reached at email@example.com. And please visit Lyndsay's blog at myblog.wiseanalytics.com.
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