November 11, 2015

Notes on the technology supporting packaged application software

This is part of a three-post series on enterprise application software over the decades, meant to serve as background to a DBMS2 post on issues in enterprise apps.

o. I’d like to discuss the technology underneath packaged application software. To create some hope of the discussion being coherent, let’s split apps into a few categories:

1. The idea of bundling ERP (or its predecessor MRP) with an underlying DBMS has been around for a long time.

And for smaller enterprises, it has been the norm, not the exception.

Read more

November 11, 2015

Enterprise application software — vertical and departmental markets

This is part of a three-post series on enterprise application software over the decades, meant to serve as background to a DBMS2 post on issues in enterprise apps.

1. When I started as an analyst in 1981, manufacturers seemed to still be over 40% of the IT market. For them, the distinction between “cross-industry” and “vertical market” application software wasn’t necessarily clear. Indeed, ERP (Enterprise Resource Planning) can be said to have grown out of the combination of MRP and accounting software, although it never was a manufacturing-specific industry category. ERP also quickly co-opted what was briefly its own separate category, namely SCM (Supply Chain Management) software.

2. Manufacturing aside, other important early vertical markets were banking, insurance and health care. It is no coincidence that these are highly regulated industries; regulations often gave a lot of clarity as to how software should or shouldn’t work. Indeed, the original application software package category was probably general ledger, and the original general ledger packages were probably for banks rather than cross-industry.

Read more

November 11, 2015

Enterprise application software — generalities

This is part of a three-post series on enterprise application software over the decades, meant to serve as background to a DBMS2 post on issues in enterprise apps.

1. There can actually be significant disagreement as to what is or isn’t an enterprise application. I tend to favor definitions that restrict the category to (usually) server software, which manages transactions, customer interactions, financial records and things like that. Some other definitions are even more expansive, including personal productivity software such as Microsoft Office, computer-aided engineering systems and the like.

2.  Historically, application software has existed mainly to record and route information, commonly from people to machines and back. Indeed, one could say that applications are characterized by (up to) five (overlapping) aspects, which may be abbreviated as:

The first four of those five items fit into my “record and route information” framework.

Read more

August 7, 2015

Application databases

In my recent post on data messes, I left an IOU for a discussion of application databases. I’ve addressed parts of that subject before, including in a 2013 post on data model churn and a 2012 post on enterprise application history, both of which cite examples mentioned below. Still, there’s a lot more that could be said, because the essence of an operational application is commonly its database design. So let’s revisit some history.

In many cases, installing an application allows enterprises to collect the underlying data, electronically, for the first time ever. In other cases the app organizes data that was already there in some previous form. Either way, applications tend to greatly change the way data is managed and stored.

Read more

September 22, 2014

Larry Ellison memories

Larry Ellison had an official job change, and will be CTO and Executive Chairman of Oracle — with the major product groups reporting to him — instead of CEO. I first met Larry 31 years ago, and hung out with him quite a bit at times. So this feels like time for a retrospective.

For starters, let me say:

Some anecdotes: Read more

July 11, 2014

20th Century DBMS success and failure

As part of my series on the keys to and likelihood of success, I’d like to consider some historical examples in various categories of data management.

A number of independent mainframe-based pre-relational DBMS vendors “crossed the chasm”, but none achieved anything resembling market dominance; that was reserved for IBM. Success when they competed against each other seemed to depend mainly on product merits and the skills of individual sales people or regional sales managers.

IBM killed that business by introducing DB2, a good product with very good strategic marketing from a still-dominant vendor. By “very good strategic marketing” I mean that IBM both truly invented and successfully market-defined the relational DBMS concept, including such conceptual compromises as:

In the minicomputer world, however, hardware vendors lacked such power, and independent DBMS vendors thrived. Indeed, Oracle and Ingres rode to success on the back of Digital Equipment Corporation (DEC) and other minicomputer vendors, including the payments they got to port their products to various platforms.* The big competitive battle was Oracle vs. Ingres, about which I can say for starters: Read more

March 24, 2014

IDG and me

I never met IDG founder Pat McGovern, who was the kind of tycoon that traveled around the world handing Christmas bonuses personally to every employee in his firm. Even so, McGovern’s passing seems like an occasion for recollections about IDG through the decades. And so:

1. My connections have always been much stronger with IDG (International Data Group) publications than with the analyst firm IDC that’s also part of the business.

2. I have at times been pretty connected to those pubs. For example:

3. Computerworld has probably always been the leading enterprise technology publication, including during the trade press’ glory years. Most memorably, pre-relational mainframe DBMS were claiming with some success to be “relational”. But when Computerworld reported Ted Codd’s “rules” for RDBMS, that was that — RDBMS were defined to be what Codd and Computerworld said they were, and the bottom dropped out of the market for DBMS that didn’t meet Codd’s criteria.

4. In line with its industry leadership, Computerworld had a classified ad section that ran dozens of pages. When I hired a research assistant in my stock analyst days, the obvious choice was to run the ad there.

5. To this day, if an ego-surf shows that I’ve been quoted in countries and languages around the world — Brazil, Australia, Iran or whatever — it’s usually something I said to IDG, which then translated and republished it around the world.

6. IDG is a big enough press organization not to be perfect. Read more

November 17, 2013

Software delivery and pricing — the first 55 years

The commercial computing, software and services industries have existed for half a century or so each. It might be interesting to review how their pricing and delivery models have evolved over time.

1960s and 1970s

Modern IT is commonly dated from the introduction of the IBM 360 mainframe in 1964-5. But even before then, there was a growing industry in what we’d now call outsourced services, specifically in payroll processing; major players included Automatic Data Processing (ADP), the company that gave us Senator Frank Lautenberg, and a variety of banks. This was (and to this day remains) a comprehensive service, priced by unit of work (e.g., number of payroll checks cut).

IBM mainframes, which quickly came to dominate the market, were in the 1960s and 70s commonly rented. IBM software that ran on them was hence typically priced on a rental/subscription basis as well. The independent packaged software companies, however, often preferred to get paid up front,* and hence sold perpetual licenses to their software. Annual maintenance fees for the licensed software started in the range of 10% of the perpetual license or even less, but migrated up to today’s 20-22% range.

Read more

August 3, 2013

Further history of the term “Business Intelligence”

I previously posted that the term Business Intelligence dates back to the 1950s, even though Howard Dresner has claimed credit for inventing it at a couple of different points in the 1980s.

Now the term Business Intelligence has been tracked all the way back to 1865.

April 29, 2013

DBMS acquisitions

Recently I expressed doubts about Actian’s DBMS-conglomerate growth strategy. For context, perhaps I should review other DBMS vendors’ acquisition strategies in the past. Some — quite a few — worked out well; others — including many too minor to list — did not.

In the pre-relational days, it was common practice to buy products that hadn’t succeeded yet, and grow with them. Often these were programs written at enterprises, rather than third-party packages. Most of Cullinet’s product line, including its flagship DBMS IDMS, was came into the company that way. ADR, if memory serves, acquired the tiny vendor who created DATACOM/DB.

Then things slowed down. A Canadian insurance company oddly bought Computer Corporation of America, to utter non-success. (At least I got an investment banking finder’s fee on the deal.) Computer Associates, which did brilliantly in acquiring computer operations software, had a much rockier time with DBMS. It acquired Cullinet, Applied Data Research, and ASK/Ingres — among others — and didn’t have much growth or other joy with any of them.

Indeed, Ingres has been acquired three times, and hasn’t accomplished much for any of the acquirers (ASK, Computer Associates, Actian).

I used to think that Oracle’s acquisition of RDB provided key pieces of what became Oracle’s own extensibility technology. Andy Mendelsohn, however, disputed this vehemently — at least by his standards of vehemence — and his sources are better than mine. Rather, I now believe as I wrote in 2011:

… while Oracle’s track record with standalone DBMS acquisitions is admirable (DEC RDB, MySQL, etc.), Oracle’s track record of integrating DBMS acquisitions into the Oracle product itself is not so good. (Express? Essbase? The text product line? None of that has gone particularly well.)

Experiences were similar for some other relational DBMS pioneers.  Read more

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