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Number-cruncher Netezza enters bioinformatics area

09/22/2003 08:11 AM
By Jeff Miller

Netezza Corp. in Framingham has added a third market to the list of verticals into which it aims to sell its high-end data warehousing and analysis appliance: the bioinformatics space.

The company has extended functionality on its products for the life sciences market, and it’s got a bead on at least one potential life sciences customer.

The J. Craig Venter Science Foundation, a Maryland-based nonprofit research center, is beta-testing Netezza’s equipment for use in data analysis. The Institute for Genomic Research, one of the research groups supported by Venter, sequenced the first complete genome of a free-living organism in 1995.

“I’d say that telecom is now our primary focus,” said Ellen Rubin, director of marketing for Netezza. “We see the bioinformatics opportunity as second to that.”

Is bioinformatics a bigger opportunity than the financial services industry?

“Possibly,” Rubin said. “We feel we have a lot of momentum and it’s a pretty open market.”

Netezza has developed an integrated, standards-compliant appliance that uses commodity components, commodity processors, Linux and an open source database to process gargantuan amounts of data each second.

Essentially, it’s a God box for data processing and data warehousing.

In telecommunications, for example, customers use Netezza’s equipment to assist with revenue assurance issues for billions of calls. Financial services companies crunch market data.

Bioinformatics was a much heralded opportunity for IT startups in the late 1990s, with the race to sequence the human genome. Engineers and venture capitalists raced to provide big pharma with the tools they thought scientists needed to better analyze the mountains of genetic data their labs were generating.

But it was a bust. Pharmaceutical companies, it turned out, would rather develop their own applications.

“A lot of the hype was around prepackaged applications for scientists, but most of these companies are looking for tools that allow them to build applications themselves,” said Dan Vesset, an analyst with IDC. “Methodologies change, so it’s not like accounting where a company can package a standard solution.”

Netezza, however, is taking a different angle. Rather than provide applications, it’s providing the internal infrastructure that will allow those in- ternally generated applications to run much faster.

But it’s not as if Netezza is alone. IBM, Hewlett-Packard, Oracle Corp., Dell and many others have their sights on selling high-end databases and high-end computing systems to life sciences organizations.

Netezza, however, believes it can provide better price performance than its competitors, and the entire system is all contained in one product.

“IBM will be taking the mantle of very high-end supercomputing, Dell will be low end, low cost, and HP will take the midrange,” said Bill Blake, senior vice president of product development for Netezza. “We’re toward the high end, but it’s a commodity-based system that can match the performance of the high-end supercomputers.”



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