So HP is seriously getting into the software product business, finally! After many false starts into areas such as application server and middleware, HP with its new leadership is moving into the Data Warehouse appliance business. Read this Information Week article on NeoView.
NeoView is HP’s Data Warehousing offering, designed on the Tandem Non-stop SQL engine (acquired by Compaq some years back). Built over last two and half years, NeoView is deployed internally to consolidate HP’s myriad Datamart solutions.
The history is interesting. Mark Hurd, HP’s CEO worked at NCR which owns Teradata, the leading product for large-scale data warehousing solutions. The top customer for Teradata has been WalMart, a sort of poster child for huge data warehouse for its “market basket analysis”. The size of this data warehouse exceeds a petabyte (1000 terabyte). Randy Mott, the current CIO at HP worked at WalMart for 22 years and he was the key driver for the WalMart Data Warehouse implementation. The interesting development is that WalMart is one of the early customers for NeoView. Check this Information Week article.
The rationale for WalMart’s decision to get NeoView is pure price-performance. Teradata is known to be very expensive. NeoView offers similar functionality and scalability at a much lower price point. The space is crowded in this $4.4 Billion market for data warehousing. Players such as IBM, Oracle, Microsoft, and SAS all want a piece of the action. Then there are new players such as Netezza and GreenPlum offering appliances for specialized warehousing solutions.
The jury is still out on the NeoView solution as it is new in the market place. But given the seriousness of HP to enter this market and WalMart as a key customer, Teradata and other players must get worried. Teradata is also being planned for a spin-off from NCR soon with its own IPO in line with VMWare from EMC last week. Competition is good for the customer as it brings better solutions for the money.