EnterpriseDB has received a majority growth investment from Bain Capital Private Equity. The announcement did not disclose how much Bain Capital has invested. The deal will see no change in leadership and Green Hill Partners will continue to be a significant shareholder.
Ed Boyajian, President and CEO, EnterpriseDB said, “This significant investment from Bain Capital comes at a time when the database industry is undergoing a galactic shift.
“Nothing is more strategic to businesses and governments than data, and the traditional database market is being disrupted. Postgres is the most transformative open-source technology since Linux, and is challenging legacy database vendors for market leadership, and EDB is driving this shift.”
What is this investment about?
It’s not entirely clear what this investment is about other than Bain Capital getting a foothold in the database management market. There is no mention of investment in research & development or new products. There is also no mention of this money likely to be used to build out sales and partner programmes.
One reason for the lack of detail is likely to be the closing period. The release states “The investment is expected to be completed in the third quarter of 2022 and is subject to regulatory approvals and customary closing conditions.”
At that point, we might hope to see more details about this deal. However, it can only be seen as a positive thing for EnterpriseDB. It has been very successful in growing the Postgres market share. Last year is announced EDB BigAnimal, its first fully-managed Postgress database-as-a-service (DBaaS) offering. That solution sits on both Azure and AWS making it a multi-cloud solution for customers.
DBaaS is a market segment that is seeing a lot of interest and growth. It would be a surprise if that was not part of the reason behind Bain Capital making this investment.
Enterprise Times: What does this mean?
As the amount of data captured by organisations continues to accelerate, there is increased attention on databases. The challenge for many of the open-source database vendors is keeping up with customer demand for features.
One of those demands is DBaaS. Companies are looking to move off of on-premises solutions and into the cloud. If they can do that by moving into a DBaaS version of their current database it is an easy win for vendor and customer.
It will be interesting to see the next update from EDB as to the uptake of BigAnimal.