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Notwithstanding the recent uproar over disappointing earnings from Sybase Inc., the market for client-server relational database management products (RDBMS) continues to experience strong growth. While the RDBMS market is maturing, it is still growing more than 20% per year.
With strong enterprise players in Informix, Sybase, and Oracle and a fourth serious entry, Microsoft the RDBMS industry will remain healthy. A strong collection of vendors means lower costs and more innovative products.
The healthy outlook is one reason Oracle and Informix share prices have remained firm, even though technology and revenue problems caused a 40% drop in the Sybase share price over the past few weeks. Several factors, though, are putting more pressure on vendors' efforts to maintain revenue and earnings growth.
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