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The Future of XML

An inteview with Dr. Anthony Picardi, Senior Vice President of Global Software at IDC

Dr. Anthony C.Picardi heads Worldwide Software Research at IDC. He is responsible for the quality of IDC software studies on topics including application development, infrastructure software, Java, Internet software and software in Europe. Dr. Picardi has published studies on many different segments of the software market and is a regular speaker at IT events. He has 23 years of experience in the software market including an Sc.D. from MIT (Massachusetts Institute of Technology). 

XMLshockwave.com: In recent months, new types of databases have entered the market, for example those using XML. How will this market segment develop?

Dr. Picardi: First, let me first explain why our analysis of the market made us decide to add a fourth category to the three traditional database sectors. The technologies that dominate the market today —prerelational and relational —manage traditional data types by their numbers and text, regardless of their content. With the market entry of XML databases, we have something completely new: products that can manage and process "smart data," by which we mean self-describing data. This has only been possible since the implementation of XML technology —a development that was absolutely necessary, in our opinion. We expect this young market segment to expand at an explosive rate and forecast market volume growth from US $12 million in 1999 to more than US $700 million in four years. This would represent an annual growth rate of about 130 percent per year until 2004.

XMLShockwave.com: XML technology has only just begun to be implemented in products. At what stage of development are we today?

Dr. Picardi: Currently we are in the early-adopters phase. However, there is one major difference with respect to the many other new technologies entering the market: Everybody has heard of XML and knows how important it is. IT decision makers in every enterprise, managers and engineers alike, know that they cannot ignore XML. So we’ve been through the "evangelism stage." The number of users will soon begin to increase dramatically.

XMLShockwave.com: In your opinion, who are the most important vendors of XML databases?

Dr. Picardi: In Europe, it’s Software AG and in the US, it's eXcelon. Other software vendors like IBM, Oracle and Sybase would like to position themselves in this market. But this wouldn’t make sense in our opinion, as these three companies ’databases cannot store or process XML data natively. This makes a critical difference when it comes to application performance. As long as you ’re just storing data, the difference isn’t that great. But if data has to be processed as well, the choice to use a native XML database is extremely logical, particularly considering the speed issue.

XMLShockwave.com: What does the future hold? Will XML push out the other technologies?

Dr. Picardi: No, that is unlikely. The new XML technology complements existing ones and will not completely push them out of the market. Each of these technologies is well-founded, which is why we can expect a highly segmented market. For storing text and numbers, relational systems are recommended now and will continue to be in the future. If communication and processing are the priorities, XML is the technology of choice. Its major advantage is that it eases data integration incredibly. All programs which use this standard can exchange data easily. Up to now, there has been no other comparable development. Every application has used its own proprietary data formats. Hopefully, XML will bring an end to that.

XMLShockwave.com: Which applications or which vertical markets will be the strongest drivers of XML?

Dr. Picardi: Currently, data integration is XML’s greatest accelerator. That means the individual applications within this sector that are already able to exchange data, multimedia data, with other applications. So the first broad-scale users of XML will come from the multimedia industry: graphic and design firms, the film and music industry, the CAD/CAM sector and design automation, to name just a few. The second-most important driver of XML will be the integration of supply chains with external applications and data. For the success of public marketplaces on the Internet and electronic business processes between suppliers and their customers, data has to be exchanged reliably and securely based on recognized standards. There is currently no alternative to XML for these purposes, nor will there be in the near future. The third-greatest driving factor of XML is internal data integration within organizations. But this will take a while, because it still isn’t a priority for many companies today and, in our opinion, isn’t being pushed with the necessary force. Every department uses its own formats, so the transition to a uniform standard isn’t as easy as establishing new external relationships.

XMLShockwave.com: How do you see Software AG at present? Can it expand its position in this market? What still needs to be done?

Dr. Picardi: Software AG has undoubtedly made the right move with its complete line of XML products — Tamino, EntireX and Bolero —and therefore has put itself in an excellent technological position. Adding two products designed specifically with XML in mind, X-Studio and X-Bridge, fits in well with its strategy. Software AG is now facing the difficult task, though, of implementing its XML strategy. It has to intensify its marketing activities in the US — the largest IT market in the world —if it wants to quickly lay a broad foundation for its XML products there. But I don ’t see any reason why this shouldn’t happen.