Feeds

Netezza sees explosive growth in Q2

TwinFin upgrade around the corner

Choosing a cloud hosting partner with confidence

Momentum continues to build at data warehousing appliance maker Netezza, which posted 45 per cent growth in the second quarter of fiscal 2011, hitting $63.8m in revenues.

In the quarter, which ended July 31, Netezza brought $3.2m to the bottom line, more than four times the black ink it had in the year ago quarter.

Jim Baum, Netezza's president and chief executive officer, said in a call with Wall Street analysts that the company closed 28 new customers in the quarter had had good traction across all geographies and within the digital media, financial services, telecom, and retail sectors that live by their data warehousing.

One customer kicked in a $14m deal (the company had a $17m deal in the first fiscal quarter). The company added 22 employees in the quarter, and now has a 469 employee workforce; this includes a new development lab in Cambridge, Massachusetts, and additions to the sales and marketing teams.

Netezza had product revenues of $47.3m, up 57.7 per cent, while services sales revenues were $16.5m, up 18.4 per cent. Pat Scannell, Netezza's chief financial officer, said that 81 per cent of revenues came from the existing customer installed base.

The average TwinFin deal size was $1.6m in the quarter, and TwinFin represented 98 per cent of product revenues in the quarter. The old Mustang systems are effectively dead.

Baum said the company had started up a professional services unit in Q2 and has hired someone to run it as well as the initial employees dedicated to the unit.

Netezza's partnership with NEC, which was announced in February and which will see NEC make and sell data warehousing appliances based on Netezza software and FPGA accelerators running inside of NEC servers, has not yielded appreciable revenues yet, but Baum said the project was progressing, NEC added two customers in the quarter, and NEC was building up a pipeline.

The current TwinFin and prior generations of Netezza appliances were based on IBM's servers, and there are no plans to swap out this hardware. NEC has been a reseller of Netezza appliances since 2006, and it merely wants to use its own iron, not IBM's, when it sells into Asia/Pacific accounts. Eventually, however, NEC will sell its InfoFrame DWH Appliance worldwide, potentially pitting the two Netezza appliances against each other in certain geographies.

NEC started selling the InfoFrame DWH Appliance at the end of March. The sales plan is for NEC to push about 150 data warehouse appliances over three years.

Baum said that its sales force is mostly seeing Oracle, Teradata, and IBM in competitive deals, with win rates "very high" against these three and at 100 per cent against other niche players. Oracle's Exadata is not being seen in any higher frequency this year than it was last year, according to Baum, and in a lot of cases it is being pitched as an OLTP engine for consolidating databases, not as a data warehouse. Teradata is pitching its own data warehouse appliances against Netezza's "aggressively," and EMC's acquisition Greenplum has not changed any market dynamics yet.

Netezza has previewed Release 6.0 of its TwinFin software, and Baum said it would be generally available in the third quarter. The software will double the capacity and more than double the performance of Netezza TwinFin appliances without changing any hardware. Netezza is cooking up a high-capacity data warehousing appliance called Cruiser, slated for availability later in the year.

The Cruiser appliance, which will cram 500 TB in a rack and scale to over 10 TB of usable data, is intended to be a backup for TwinFin appliances that is also able to process queries as it sits there, eating replicated data from the live appliances.

As for guidance for the rest of the fiscal 2011 year, Scannell said that Netezza was expecting to boost revenues by 30 per cent on an annual basis, which means, in terms of absolute revenues, quarters that look about like the one Netezza just inked in Q2. That also means the growth will be slowing down as the compares get a bit tougher. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.