3/3/2006

Intelliden is Number 1 - Not quite

Filed under: — Ian @ 11:21 am

Today Intelliden, (one of Opsware’s lesser known competitors in the network device management space) issued a press release touting an IDC study that named them the leading network configuration management tool ahead of Opsware and others in the space. Interestingly the IDC report number referenced in the press release, #3372, doesn’t actually exist. Check it out for yourself here.

I can only assume that the reason Intelliden is referencing a study that doesn’t exist is that the data doesn’t actually support their claim to be a leader in anything. Doing a little digging it appears the document Intelliden actually meant to reference is IDC report 33762. If you have access to IDC you should download it and look at how Intelliden is doing it’s best to spin the data and protect against the coming Opsware/Cisco wave.

A few points to consider:

First, the report in question was released back in August 2005 by an analyst named Vincent Lui. Vincent hasn’t published anything since late fall 2005 and apparently is no longer employed by IDC.

Second, in assessing the Network Configuration Management Space Vincent sources data from CY 2004 as the basis for determining total market size and individual market share. As anyone who is involved in this market place knows 8 month old data is basically irrelevant.

As an example, in 2004 Rendition Networks was a small privately held company. In February 2005, Opsware acquired them and rebranded their product the Opsware Network Automation System. Over the 8 months between the data cited in Vincent’s report and the release date Opsware put it’s large and successful sales force behind the excellent product and drove considerable revenue in the space. As evidence you can actually read Opsware’s most recent financial statements. Check out the ticker symbol OPSW or see the press release about the FY 2006 earnings

Third, why is Intelliden putting out press releases in March about an IDC study released in August based on data collected from 2004? It seems to me that the Cisco distribution agreement announced a few weeks back has Opsware’s competitors running scared.

Finally, Vincent did get 1 part of the document correct. His final comments point out that Partnership, Scalability, and Sales strategies are going to define the successful company in the space. Opsware’s products are currently used to manage the largest IT environments in the world, Opsware’s partnerships with Cisco and others are driving strategic value for our customers and Opsware’s Sales organization is dominating the competition.

Check with Intelliden to see how their 2005 finished up and ask what the outlook is for ‘06. My guess is you can sum it up in one word “Bleak”

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