Nancy Marrone, senior analyst at Enterprise Storage Group Inc., says partnering up with storage hardware and software vendors is definitely a smart strategy for Princeton Softech, because it's the IT managers who deal with storage that are feeling the most pain. "For anyone who's trying to attack this data-lifecycle management piece, database archiving is a critical piece," she says.
Besides pursuing storage alliances, the No. 1 priority for the company is filling gaps in its product lineup.
In the third quarter of 2003, Princeton Softech expects to deliver a product for archiving data from Oracle's E-Business Suite (a.k.a. Oracle Applications), giving it an offering that will be competitive against two startups, OuterBay Technologies Inc. and Applimation Inc., that have been successfully exploiting the segment. Cash notes that there are 12,500 installations of Oracle Apps worldwide, a customer base Princeton Softech will eagerly pursue.
Another obvious area Princeton Softech has so far ignored is email archiving. Players in this space include KVS Inc., Legato Systems Inc. (Nasdaq: LGTO), Tumbleweed Communications Corp., and Veritas Software Corp. (Nasdaq: VRTS).
Cash says email doesn't play to Princeton Softech's strength in relational database technology. However, she says, the company does plan to enter the email archiving market, probably via an acquisition, although it's not as big an opportunity for the company as database archiving is. Gartner Inc. estimates the email active archiving market to grow to $134 million by 2006. That's just a fraction of the $4.7 billion market opportunity Princeton Softech estimates currently exists for its database, ERP, and CRM archiving software.
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