CRN Interview: IBM's Ambuj Goyal

CRN: IBM Software has said they're a better partner for ISVs because athey don’t' get into apps. Some might argue that Informatica is an ISV. Where do you draw the line?

Let me back up a bit on ERP. If you take a look at fourth quarter published IBM numbers, a number talked about was 4 percent growth for information management software, that includes the complete portfolio. If you don't take currency adjustment into account, the growth [of IBM's information management group] was in double digits. That's typically what others report. We adjust for currency.

CRN: You do not count Lotus in information management, right?

Goyal: Right. Not counting Louts applications.

One of our biggest supporters over last four years is SAP …unsurprisingly so. They are working with us…The reason is two fold. There is a business reason but the real reason is we have worked very hard with SAP for six years to optimize our database for SAP. In 2005 we announced an optimized database for SAP [and because of that] customers are seeing 30 to 50 percent reduction in capacity requirements in their SAP installations. [This is] not just because of database software but because a typical SAP application requires 30 to 50 percent less capacity [and the] deep integration of our data technology inside SAP reduces the number of DBAs needed. So total cost of ownership is significantly lower. A customer spending millions of dollars on SAP installation can suddenly see that many projects he wanted to do but couldn't, he can now do them. It's because of hard work we've done together.

This is what we are doing with ISV after ISV—improve integration and joint delivery into market. Customers are not looking for technology integration, they're looking for end business value.

CRN: The obvious question in the past is would you do what you've done for SAP for PeopleSoft and Siebel now that they're part of Oracle?

Goyal: We have openly offered to Oracle and will continue to work with Peoplesoft and Siebel [applications]… we were already doing it.

CRN: But is there a version of DB2 optimized for Siebel and Peoplesoft?

Goyal: We have always been working with them. These things are continuously being done. The question is Oracle has made up its mind based on industry pressure, they'll at least continue to support our WebSphere application and have left the decision about database open. And they're getting an amazing amount of pressure from customers ….They've indicated they'll continue to support current [PeopleSoft and JD Edwards] applications till 2013. [Editor's note: The lion's share of JD Edwards applications run on IBM.]

CRN: But you introduced DB2 optimized SAP? Is there such a thing for Siebel and Peoplesoft?

Goyal: We were in the process of doing TCO assessment. We have done the work and were in the process.

CRN: There has been marked change in Larry Ellison's rhetoric on IBM. He's not slamming you as much.

Goyal: One more time, our objective is not competition. Their objective is to slam, our objective is to meet the needs of the customer. There was value in delivering an SAP optimized database, there's value in delivering Lawson-optimized database, there's value in delivering, Dynix optimized database, there's value in an Iron Mountain-optimized content manager, Silicon Plains-optimized content manager. There's value in delivering Teradata optimized information integration. There is value for the customer. We do all of those things. My point to you is we're about value to the customer, and if our competition wants to focus on us rather than their customers, fine with me

CRN: Should we expect to see from you guys, within the mext 12 months, new DB2 SKUs for PeopleSoft version X or is that still to be determined?

Goyal: I cannot talk about the future, but everything that we've done to optimize for one ISV turns out to be useful across the board.

CRN: Is there to your knowledge a group at Oracle working on DB2 optimization of Peoplesoft?

Goyal: I would like to take this conversation to the next step. In typical database software, 20 percent of our business comes from custom app development. Even if all the databases under Peoplesoft, Siebel, SAP were IBM, from an installation management perspective it would be less than five percent of IBM's information management business. By focusing so much on one or two ISVs, we are not presenting the complete view of information management. It's a very small part of the overall business.

There are an amazing number of people who do custom app development, an amazing number who run content management, there's amazing focus on meta data management because database management is a commodity. The point I want to make, what we were just talking about is not a commodity battle that the whole information management business depends upon. It's far bigger. Yes, we'll fight the battle for ISVs, but that's a commodity fight, a small portion of our business…

CRN: What should we expect from your group at the Partnerworld show next month?

Goyal: Expect to hear about amazing momentum around information management, no vendor is growing faster that delivers the complete opportunity from database to content management to information integration to master data management.

CRN: The issue with IBM and partners overall, is that large integrators view IBM Global Services as a competitor and have to weigh that. In your group how do you overcome resistance among partners who have Microsoft telling them they're better off partnering with Microsoft because it does not have a huge services arm?

Goyal: As long as partners remain at a 50,000 feet level, that's a great argument. When a partner truly understands how we work with them, whether they are in services, Ascendant, Perficient, Chordiant, they'll tell you we have a great tradition of partnering.

CRN: Will you preview Viper at PartnerWorld?

Goyal: We already did all previews…starting in November and at the show we will show not only the database but discovery services, how to discover risk and compliance issues and content. We'll show you the native release of our meta data management and master data management capabilities, information as a service.

CRN: When you say meta data management, you mean Ascential stuff?

Goyal: Yes. Metadata management has been about managing things that are static. What's missing in the sense that information is changing every day. Sources are changing every day. New usesare invented every day. Metadata management proactively manages that…

The technology we've previewed is about proactive data management, about enterprises taking back control of information assets and managing them over long period rather than it being a point-in-time project. It's technology that came from Ascential, some was organically develeloped, and some leveraged from partners.

Websphere MetaStage is out there, and that's about information integration only, not about collective meta data management.

CRN: This whole notion of proactive meta data management….

Goyal: This is the Hawk Project we've previewed in analyst meeting.