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In September of 2000, Informix shook the database world when it announced that it would split into two independent operating companies (see http://www.informix.com/informix/press/2000/sep/091900.html), one for database software (Informix Software) and one for solutions ("NewCo" – not yet named). Of course the split created quite a lot of concern and questions about Informix’s future. Because of my huge commitments to Informix products, I was also concerned. Following is an interview with Jim Foy, president of Informix Software.

RON: When will the new companies be named?

JIM: We've already named the database company: It is Informix Software. We're officially back in the database business! For years, users wanted us to go back to our traditional business and we're doing

it. Retaining the Informix Software name will allow us to build on the brand that most technologists know.

"NewCo" is the solutions company and it will be named by the end of the year.
 
 

RON: Which products will become part of Informix Software?

All of the branded Informix database products: C-ISAM, INFORMIX-SE, Online 5.x, INFORMIX-4GL, Dynamic 4GL, SQL Connect, IDS 7.x, IDS.2000, Foundation.2000, XPS, Red Brick, and Cloudscape, as well as Ardent UniVerse, UniData and related tools. Informix Software provides a robust selection of database products.
 
 

RON: How will you determine the status of products like DataStage, which could cross over between the two companies?

JIM: We are in two different businesses and serve different markets. Informix is in the database business. We sell databases to end users, partners and application developers who need databases. NewCo sells solutions that can be customized to particular customers needs. DataStage is much more aligned with building the solution and thus will be part of NewCo.
 
 

RON: Will the companies lose any of the synergy they currently have because they're under the same roof? In other words, will the splitting of databases and solutions cause the companies to lose the power they had as one company?

JIM: The two companies will have close relationship with each other, just as they will have with other partners. We expect that each company will be strong partners of the other, but both companies will work hard to establish multiple partnerships.

Each company is created as an independent entity. Many of the current working relationships will be retained, though new relationships will be formed. In many cases, teams already work together and will maintain their cohesiveness. But of course some teams will be split between the two companies. There will be a rebuilding process and we are confident that it will work out for the best. In fact this process is already well along. So far, we've had a lot of excitement about the new opportunities that have been created.
 
 

RON: Informix currently has a sales force that offers ALL Informix products, including the products that will be sold for both new companies. Technicians and customer service often cross over as well. How will the sales force and the employees in general be allocated between the database and solutions companies?

JIM: All operations will be completely split between Informix and NewCo. Each company will have its own sales, support, customer service, and other functions. These employees will be taken from the current workforce and we'll fill additional needs with new employees. Most of these decisions have already been made and we are now in the process of implementing the plan.
 
 

RON: But how did you decide who goes to which company?

JIM: Some employees are naturals for one company or another. There are people working on either solutions or database products and they love what they do. Senior management has already been appointed and they worked with everyone to do the best for the company and the employees. This has not been easy but it is now almost complete.
 
 

RON: When will the transition be completed?

JIM: Operationally we expect the transition to be completed in October, almost certainly before the Informix User Conference (during the week of October 23). The legal separation will take well into next year.
 
 

RON: What will happen to products like Media 360, which rely on Informix technology? How will you work with NewCo to ensure that such products will continue to work well with Informix database products?

JIM: These solutions belong to NewCo. They will make sure that over time their solutions will run on other databases, and will also ensure that they run very efficiently on Informix Software products.

Informix Software will treat NewCo as a strategic partner and we'll listen very carefully to their needs, making our databases work efficiently with their products. We want the other application and solution companies to make Informix the database of choice for their software. Therefore we'll work closely with other application and solution providers as well.
 
 

RON: Informix has traditionally trailed Oracle and other in the applications market for ERP, Web and other vertical applications. How will Informix Software improve this situation?

JIM: It is critical that Informix Software revitalizes the direct channel as well as the connections with large ISVs and vertical application providers. We already work well with SAP, Broadvision, and others, but this market has been very neglected. We will place a very significant focus on rebuilding the channels for our database software.
 
 

RON: Informix has long discussed the consolidation of its database engines. The integration of the 7.x and 9.x product lines is completed in Foundation.2000 and IDS.2000. What about XPS? Does the consolidation include Red Brick? If this consolidation is done, will Informix offer options that "turn on" the necessary functionality for advanced features? Will the consolidation take away from focus on other features for OLTP or BI, which can now be accomplished with separate 8.x and 9.x product lines?

JIM: All of these things are in process. XPS has industry-leading technology. It recently achieved two world records in TPC-H benchmarks. Of course our IDS.2000 and Foundation products provide industry-leading OLTP and Web processing capabilities. Our goal is to be the database server of choice for e-business.

There is a new opportunity that is driven by convergence in the market. OLTP, Decision Support and Object Relational databases can no longer exist in isolation. Our users and the market at large are increasingly expressing the need for systems that can handle all of their data management requirements. For example,

OLTP users want to analyze their data; data warehouses are being opened up to thousands of users; and, largely thanks to the Internet, "complex" data (spatial, video, time series, XML, etc.) must now be an intrinsic part of both transactional and decision support environments. By bringing the best of our technology into a platform that solves the hardest data management problems, we provide a scalable, multi-mode solution that only

Informix can deliver. In the mean time our customers can be assured that we will continue to support the products that they are using and they can be confident that they’ll have a great future.
 
 

RON: Informix has been promoting Foundation.2000 and XPS as separate products for business intelligence (BI) and Web solutions. Are you saying that if the products are combined, they'll be positioned as one solution

for all businesses?

JIM: Absolutely. Data warehousing, BI and Web are incredible growth markets. These are the markets that we want to be in.
 
 

RON: The pricing model has changed for almost all of your competitors, though Informix still works on the concurrent user model. Are there plans to change this situation and offer new options, perhaps like the previous

"workgroup editions"?

JIM: This is a subject that I'm closely investigating. There are so many complex pricing models and its really hard to determine how much things really cost. For example, there have been a lot of user complaints about Oracle's model. We are doing lots of research and will soon determine our new models (if they change). We want to simplify our model and in the process make business a little easier for our partners and customers.
 
 

RON: What are your plans for the Linux market?

JIM: I consider the Linux community to be very important. We will be announcing our Linux plans and product releases soon.
 
 

RON: Speaking of Linux, do you have any plans for OpenSource?

JIM: This is also something that we're considering. Certainly it is a Big part of today's software world but we are not yet ready to announce any new plans.
 
 

RON: What will happen to SE, Online 5.x, and Red Brick?

We have to take our customers’ interests very seriously. We have a LOT of customers still on older products like SE and OnLine 5.x and they're very important to us. Many customers are perfectly happy with their solutions and we do our best to accommodate them as well as to offer alternatives.

I believe in the value model: if new products have perceived value, customers will move to the products on their own. We want to see them move on to our new products, but we won't abandon them if they want to stay where they are. We'll do our best to help everyone while managing the product life cycle.

Red Brick is still one of the best analytical engines in the industry. It has a lot of dedicated customers and is well respected. We plan for it to be a long-term solution and will continue to develop it.
 
 

RON: What are the plans for Cloudscape?

JIM: Cloudscape is an incredible product. It's very innovative, unique and Can get us into many new markets and platforms. It has a great chance to be an industry-leading product.
 
 

RON: What is the future of Dynamic 4GL?

I want to meet with 4j's in the near future to discuss how to move forward into the future. This is a very high priority. We have a very large installed base in 4GL and Dynamic provides a great way to create GUI and Web applications for this customer base.
 
 

RON: The International Informix Users Group (www.iiug.org) is a worldwide communications channel between Informix and its users. What are your plans for the group and its board of directors (of which I'm a member)?

JIM: I'm very familiar with the IIUG and user groups in general. They Are an excellent way for us to communicate and touch the entire user community. We will support the IIUG as much as possible.
 
 

RON: Your previous company, Ardent, was known to be a partner-centric organization. On the other hand, many Informix partners have felt that Informix has not supported them, sent leads, etc. What are your plans

for the partner organizations?

JIM: Our partner programs will be a serious part of Informix Software and NewCo. Ardent had an extremely productive partner channel and it can be the same for Informix. This requires us to be proactive. Of course we

can't just SAY it; we have to demonstrate it. I want us to roll the partner program out in a systematic way; we won't just try to change it overnight. We don't look at our partners as companies that just sell things; we have to understand their needs. We're starting to engage in the partner forum and have made a lot of progress.

The important thing is that we want to do it well.
 
 

RON: You're projecting only 5% license growth over the next year. Why is that?

JIM: We've seen declining license revenues recently and have to turn it around. The actions we're taking should result in larger sales, but I don't know if we can go from a 20% decline to 5% increase overnight so we

have to be a little conservative. Having said that I do see lots of opportunities and our current focus will help us better market and sell our products. We hope to exceed the goals.
 
 

RON: There has been a lot of concern about when Informix Software and NewCo will be able to get back into the sales process. How long will it take?

JIM: We're well aware of this issue and it won't take long at all. I expect the new sales force to hit the ground running IN OCTOBER.
 
 

RON: Any closing comments?

JIM: I'm grateful for the opportunity to discuss Informix Software with you. We are working hard to build a focused company that will provide the best database management system for e.business in the industry. We

will all work hard to earn your support try hard to be a good partner.

Informix Software - the database company - is back!
 
 
 
 

Credits and Contact Information

Editor: Ron Flannery
Contact information: rflanner@informixhandbook.com, www.one-point.com, www.informixhandbook.com

Feedback:

To provide feedback on this article, please send a message to enews@informixhandbook.com.

Copyright (c) 2000 Ron Flannery

You can send this interview to any Informix user or other interested party, provided it is not sold for commercial purposes.