Sybase and MicroStrategy Team on Vertical Market Portal Applications

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Event Summary

"EMERYVILLE, Calif., Nov. 1 /PRNewswire/ -- Sybase, Inc. (Nasdaq: SYBS) today announced a comprehensive, multi-year licensing, technology and service agreement with MicroStrategy Incorporated (Nasdaq: MSTR). The alliance offers customers MicroStrategy's Intelligent E-Business software coupled with customer relationship management (CRM) and business performance management (BPM) applications. Under the terms of the partnership, Sybase will embed and re-market MicroStrategy Intelligent E-Business Platform for the Industry Warehouse Studios (IWS) offerings; thereby leveraging MicroStrategy's core analysis, personalization, and broadcast technology within Sybase's complement of analytical CRM and BPM applications". As stated by Eric Miles, senior vice president and general manager of Sybase's Business Intelligence Division, "As Sybase expands its growth in the business intelligence, CRM and BPM markets, it is critical to form strategic partnerships with companies that share our vision".

Each of the Sybase Industry Warehouse Studios consists of five analytical customer relationship management applications and one industry-specific module. The suite of six applications, designed for sophisticated, business performance management and customer relationship management include marketing campaign analysis, customer profile analysis, sales analysis, loyalty analysis, customer care analysis, and business performance management (the vertical component which delivers operational scorecards and analytical reports).

MicroStrategy powered versions of the Sybase Industry Warehouse Studios for Property & Casualty and Life Insurance, Telecommunications, Healthcare, Retail Banking, Credit Card Companies, and Capital Markets will be available during the first quarter of 2000 on UNIX and NT platforms. Industry Warehouse Studio applications start at $100,000 (US).

Market Impact

According to Sybase "The Company is leveraging core enterprise product strengths to capitalize on the emerging enterprise portal market to provide powerful new solutions that deliver on the promise of e-Business." Due to their decreasing hold on the overall database market, Sybase is attempting to focus vertically in an attempt to improve their profitability. (Sybase saw share value decrease 44% in 1998, revenues have decreased for the last two years, and they have suffered four years of negative earnings per share). MicroStrategy has been very successful in the portal arena, and their stock has appreciated over 300% in the last three months alone (at the time of this writing, the stock was selling at $94 per share). In addition to this agreement, MicroStrategy has also announced alliances with Unisys and NCR. If Sybase is successful in leveraging this marketing relationship, it should help restore some market confidence in the firm.

User Recommendations

Companies with specific needs for these vertical market applications should investigate the Sybase Industry Warehouse Studio product offering. Tight integration with MicroStrategy will provide synergies in terms of metadata management and business intelligence. However, we believe attention must be paid to Sybase's on-going commitment to the relational database management industry, and also to their financial viability.

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