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Netezza Nets $20M More: Page 3 of 3

"The company customers I've talked to are very impressed with the performance of the appliance at that price," says IDC's Vesset.

Of course, Netezza isn't the only company going after customers in this space. The startup is competing with big players like IBM Corp. (NYSE: IBM) and Teradata, a division of NCR Corp.

"There's always some skepticism when a new solution comes out," Vesset says. However, he points out, since the company's appliance uses off-the-shelf components and is based on open systems, it should have a solid chance to capture some of the market. "Besides very strong processing power, the fact that they've pulled everything together in one appliance decreases the maintenance cost," he says.

Eugénie Larson, Senior Editor, Byte and Switch