MongoDB has the opportunity to grow beyond databases

Most of the revenue MongoDB (((NASDAQ: MDB) It comes from the database of the same name. Over half of the total revenue comes from Atlas, the company’s cloud database service, and much of the rest comes from Enterprise Advanced services for large customers looking to run MongoDB on their own hardware.

Atlas has been at the heart of MongoDB’s growth story for the past few years. The company’s database software is open source and anyone can download it for free, Managed database service Customers no longer have to manage the underlying infrastructure like Atlas. Atlas’ annual revenue execution rate is close to $ 400 million, with first-quarter revenue growth of 73%.

Image Source: Getty Images.

Ecosystem around the database

At the heart of MongoDB is always the database. Modern web or mobile apps rely on some kind of database, and MongoDB Atlas is suitable for many use cases.

Modern apps also rely on other infrastructure. Static content needs to be hosted somewhere, user authentication needs to be implemented, and the backend server needs to be spun up.I’m using Atlas as my database, but otherwise Major cloud providers Otherwise, you need to place the server application between the database and the application running in the user’s browser or phone.

MongoDB makes life easier for developers using Atlas by allowing them to build their entire application on the MongoDB platform. This effort started a few years ago with MongoDB Stitch.Backend as a service that combines serverless capabilities, user authentication, and data access rules. Atlas users can use Stitch to access the database instead of running the server elsewhere.

Stitch has been incorporated into MongoDB Realm, a name derived from the mobile database company MongoDB acquired in 2019. Realm is a full-fledged app development platform that provides static hosting, cloud capabilities, user authentication, and easy access to the underlying Atlas database. .. Developers using Atlas can host their entire application with MongoDB Realm without the need for a server.

Realm also provides the ability to sync data stored in Atlas with apps running on mobile devices. This feature is especially useful for things like messaging apps where each device needs to be in sync at all times.

Realm users pay Atlas fees in addition to realm usage-based fees. MongoDB charges Realm users based on the number of requests from client applications, cloud function execution time and memory usage, and the time spent synchronizing data. Depending on the nature of the application, realms can be significantly cheaper than launching cloud servers elsewhere to handle back-end tasks.

Realms are not currently an important source of income compared to Atlas, but they can change over time. CEO Dev Ittycheria said: Company’s latest financial results announcement About products other than Atlas:

And today, revenue is primarily viewed separately from Atlas [products]But don’t assume that’s the case in the long run. We are pretty aggressive … we have an innovation agenda. Therefore, you will see that products and SKUs are added over time.

The MongoDB database will continue to be at the heart of everything the company does. With Realm, MongoDB has the opportunity to gain a larger share of cloud infrastructure spending. Realm isn’t a solution that works for all use cases, but it does provide customers who are already dependent on Atlas with a good reason to spend more in the company.

This article represents the opinion of a writer who may disagree with the “official” recommended position of The Motley Fool Premium Advisory Services. We are miscellaneous! Asking investment treatises (even our own) helps us all think critically about investment and make decisions that help us become smarter, happier, and richer. Useful.

MongoDB has the opportunity to grow beyond databases

Source link MongoDB has the opportunity to grow beyond databases

Related Articles

Back to top button