Periodic Reporting for period 2 - GOVERNOR (New-generation database capacity planning optimization)
Reporting period: 2019-08-01 to 2020-07-31
The global data center market will double its size over the next 5 years, reaching a total of $304 billion. As a result of this, efficient database capacity planning will be essential to keep operational costs under control. However, current capacity planning relies heavily on manual analysis, leaving to systematic capacity over-dimensioning and unnecessary license and hardware costs.
Over the last 5 years, we have developed SQL GOVERNOR: a complex but intuitive capacity planning software. SQL GOVERNOR offers a standalone solution for efficient server consolidation and optimization. Our patented solution reduces the total number of servers by matching the optimal database instances for each server and by maximizing the resource efficiency. This results in database lifecycle savings of up to 50%, at equal or better performance. For large companies with significant database infrastructure, this represents savings of over €1 million per year.
Following the market trends and our own past experience and numbers, we expect to expand the implementation of SQL GOVERNOR and reach a total of over 200 large businesses by 2024. By significantly reducing operational database costs, SQL GOVERNOR will translate into at least €200 million in cumulated savings for key EU enterprises, thus reducing the transfer flux towards US-based database vendors. Additionally, in terms of electricity consumption, this will also translate into total savings of 2,000 GWh per year in database processing efficiency, which is roughly equivalent to half of the yearly electricity consumption in the city of Brussels.
By cooperating with our reseller partners, , we will now extend our reach to effectively distribute SQL GOVERNOR to mainly medium and large companies, who are our target clients. We expect a gradual customer increase, reinforced by our country expansion strategy and the release of technical upgrades for further market expansion. We also expect to achieve a higher percentage of large customers as a result of higher reseller implication and the synergy capabilities with our key partners.
Over the last 5 years, we have developed SQL GOVERNOR: a complex but intuitive capacity planning software. SQL GOVERNOR offers a standalone solution for efficient server consolidation and optimization. Our patented solution reduces the total number of servers by matching the optimal database instances for each server and by maximizing the resource efficiency. This results in database lifecycle savings of up to 50%, at equal or better performance. For large companies with significant database infrastructure, this represents savings of over €1 million per year.
Following the market trends and our own past experience and numbers, we expect to expand the implementation of SQL GOVERNOR and reach a total of over 200 large businesses by 2024. By significantly reducing operational database costs, SQL GOVERNOR will translate into at least €200 million in cumulated savings for key EU enterprises, thus reducing the transfer flux towards US-based database vendors. Additionally, in terms of electricity consumption, this will also translate into total savings of 2,000 GWh per year in database processing efficiency, which is roughly equivalent to half of the yearly electricity consumption in the city of Brussels.
By cooperating with our reseller partners, , we will now extend our reach to effectively distribute SQL GOVERNOR to mainly medium and large companies, who are our target clients. We expect a gradual customer increase, reinforced by our country expansion strategy and the release of technical upgrades for further market expansion. We also expect to achieve a higher percentage of large customers as a result of higher reseller implication and the synergy capabilities with our key partners.
The project has been successful and have met most of the set goals. In spite of the challenging overall situation with COVID-19 significantly affecting the dissemination and business development activities in the target markets, we have been able to continue to expand our partner network and find new lead customers in USA and Europe. We have also successfully accomplished new capabilities for our SQL Governor product including enhanced planning support for Azure, expansion to AWS planning, and the first SaaS version of the product.
SQL GOVERNOR already supports Microsoft SQL Server, the database brand with the largest market penetration. For the Phase 2, we will planned to finish development of SQL GOVERNOR with 3 strategic additional features to support faster and broader scaling of the business: Cloud environment planning support (covering Microsoft Azure and Amazon Web Services), a GOVERNOR SaaS version and integration to market leading third-party tools.
Commercially, we planned to continue our expansion across Europe and USA, in collaboration with our network of partners. We expected to expand the implementation of SQL GOVERNOR and reach a total of over 200 large businesses by 2024. This would result in €200 million in cumulated savings for key enterprises in the EU and elsewhere. The Phase 2 project will allow us to reach the payback period after only 3 years of full commercialization. After 5 years, we expect yearly revenues of over €20M and a ROI of 7.7.
Commercially, we planned to continue our expansion across Europe and USA, in collaboration with our network of partners. We expected to expand the implementation of SQL GOVERNOR and reach a total of over 200 large businesses by 2024. This would result in €200 million in cumulated savings for key enterprises in the EU and elsewhere. The Phase 2 project will allow us to reach the payback period after only 3 years of full commercialization. After 5 years, we expect yearly revenues of over €20M and a ROI of 7.7.