The PostgreSQL business
[Posted August 2, 2006 by corbet]
Back at the beginning of 2005,
Pervasive
Software decided that there was money to be made by
selling support services for the
PostgreSQL relational database management
system. It seems like a good idea; PostgreSQL is a rock-solid system,
increasingly fast, offering a number of interesting features. It is
running in no end of production environments - including, it should be
said, on the LWN.net server. Free RDBMS systems look poised to create
trouble for their proprietary competition just like Linux made life
difficult for proprietary Unix systems. PostgreSQL is clearly around for
the long haul, and looks like a winning bet.
Not for Pervasive, however; the company has just published an open letter to the
PostgreSQL community stating that, while the company remains a big fan
of PostgreSQL, it is getting out of the PostgreSQL business.
The money, it seems, simply wasn't there. Pervasive is not the first to
come to this conclusion; a few years ago, a company called Great Bridge
failed with the same model, despite employing several high-profile
PostgreSQL developers. Red Hat still offers its version of PostgreSQL, but
the last posted news for that product is dated November, 2005, and the
product is not mentioned anywhere in Red Hat's last annual report.
PostgreSQL, it seems, is a hard business. According to Pervasive, the
problem is that the free support is just too good:
While we always knew that PostgreSQL is a solid product with
advanced database capabilities and that it has a very real
opportunity to shake up the high-end database market, we
underestimated the high level of quality support and expertise
already available within the PostgreSQL community. In this
environment, we found that the opportunity for Pervasive Software
to meaningfully increase adoption of PostgreSQL by providing an
alternative source for support and services was quite limited.
It is true that the PostgreSQL community is capable and helpful; any
company which wishes to offer something better than what the community
provides has a very high standard to meet. But there almost certainly has
to be more to it than that. MySQL AB has had a fair amount of commercial
success - something which companies working with PostgreSQL have not been
able to duplicate. One might guess that the
PostgreSQL community is more helpful than the MySQL community, and, as a
result, there is more commercial opportunity in the MySQL realm. This does
not seem like an idea that is likely to go very far. Something else is
happening.
Perhaps commercial PostgreSQL support is simply an idea whose time has not
come. Most PostgreSQL users may still be early adopters - people who are
willing and able to handle the support details themselves. The larger
market of users who are more interested in buying support services,
perhaps, has simply not developed yet. To the extent that this hypothesis
holds water, the companies which have tried to create a market in
PostgreSQL services have not done an adequate job of selling its merits to
potential customers. That would indicate that more work has to be done to
spread the word on what a good product PostgreSQL truly is; there needs to
be a serious brand-building effort.
There is another factor which should be taken into account here, however.
Much of MySQL AB's success does not come from support services; instead, it
comes from licensing. The MySQL code is licensed under the GPL, and the
copyrights are all held by MySQL AB; as a result, MySQL AB is able to offer
proprietary-style licenses to companies which wish to use MySQL, but which
do not wish to license their own products under the GPL. PostgreSQL,
instead, carries a BSD license and its copyrights are held by a number of
different groups. So there is no "GPL exception" business model possible
for PostgreSQL. Anybody wanting to use PostgreSQL in a proprietary product
can do so without asking permission (or buying licenses) from anybody.
What all this means is that anybody trying to build a business around
PostgreSQL must rely entirely upon services. They must convince potential
customers that PostgreSQL is good enough to merit consideration over any
number of proprietary alternatives, but not so good that these customers
can support it themselves. The latter part should be relatively easy -
there's still no end of customers who require support services before they
will consider deploying a system. But convincing companies to walk away
from their proprietary database vendors remains a hard sell. PostgreSQL,
along with a number of other free database management systems, is a
high-quality project. Eventually the commercial world will
understand that fact, just like it has slowly figured out that Linux is
worthy of its attention. But, until that time comes, making money from
PostgreSQL will be a challenging task.
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