Sybase IQ

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April 22, 2010

Leading Indicators

I was just looking over some notes on the recent earnings announcement from IBM and something caught my attention. IBM looks to be doing quite well, with 11% growth in their overall software business and an unspecified double-digit growth in their analytics software (Cognos) business. Glad to see a partner company doing well, of course, but what really caught my eye was an observation about the uptick in services revenue. A pick-up in consulting business, it was noted, is typically a leading indicator for IT spend.

Very interesting, and potentially a sign of better times for us all on the horizon.

In pondering IBM’s results, I got to wondering whether there are any leading indicators to be found in Sybase’s Q1 results as just announced by our Chairman, CEO, and President John Chen.

If there are, the first thing we will note is that these indicators could speak to some fairly long-term trends. Sybase has recently completed its third consecutive record year — imagine that, in light of what has been happening with the economy overall during that time — and we have just announced that Q1 of 2010 was another record quarter. That makes 10 such quarters in a row for those who are keeping score at home. (If all this sounds kind of familiar, it should.)

We’ll take as a given that these results show outstanding planning and execution on the part of Sybase. The question is, is there another trend over the past three to four years that such results might reveal? Note that our total revenue in Q1 grew 10% year over year, and specifically, database license revenue this past quarter was up 25% compared to Q1 of 2009. John says that Sybase’s overall offering in the analytics space (including RAP, CEP, and Sybase IQ) is “an engine” of this strong momentum. This would also seem to echo what IBM was saying about the contribution of Cognos to their overall software growth.

Among other trends, the success that Sybase has had over the past few years looks to be an indicator of a major shift towards analytical performance, over and above operational performance, as a core focus of IT infrastructures within business. Good economic times, bad economic times, it doesn’t matter — this shift is happening, and Sybase is at the forefront.

Organizations are increasingly on the lookout for technology that will turn their information into better decisions. Our customers (and others) clearly recognize the technological and market leadership that Sybase continues to demonstrate in analyzing, as well as managing and mobilizing, data. It’s no stretch to predict that these results are also an indicator that Sybase’s leadership, and widespread recognition thereof, will continue to grow.

Posted by Sybase IQ at April 22, 2010 4:12 PM