Oracle and Hyperion - what does it mean for Australian Oganisations?
In a nutshell I think this acquisition will create short - medium term confusion for existing customers as well as those currently or about to go to market to procure new business software.
Clearly Oracle's ultimate goal here is to hurt its arch rival SAP. And this acquisition (of Hyperion) will certainly be a thorn in SAP's side, since many of SAP's platform customers use Hyperion for at least some component of their Performance Management strategy (budgeting, business intelligence, consolidation, strategic modelling.) This means that Oracle gets a footprint into those organisations that use the SAP/Hyperion combo and the Oracle sales force can now extend their target selling deep into SAP's base. Let's face it, along with the purchase of the technology comes an neat list of Hyperion's SAP clients.
So, existing SAP/Hyperion clients will suddenly find themselves as SAP/Oracle application clients. Hmm... let the confusion begin.
On the flip side of the coin, those organisations looking to procure software will be unsure as to Oracle's true intentions. Sure there are statments galore, but history shows that Oracle has been ramping up its own R&D into Performance Management / Business Intelligence. So now with the Hyperion suite, where does this leave Oracle's own products?
Since BPM Partners is a subject matter expert in evaluating such business software and has been tracking this space for a number of years, it has been clearly evident to us that consolidation will take place constantly. (And even with that, our anual buyers guide of BPM/BI vendors still grows each year - this year over 100 vendors). But with that so too will come market confusion. It takes a massive coordinated effort to align two software companies with different cultures, underlying technologies and management styles.
So what is next? Well it is anyone's guess but clearly Oracle have set an enormous precedent here and have paid a huge premium for Hyperion. Cognos and / or Business Objects (and maybe even Information Builders) are likely the next targets of an M&A. By whom - your guess is as good as mine!
One thing is for certain though - you need to do your due diligence before you rush out and buy software.
posted by Warren Slabe @ 4:16 PM
3 comments
3 Comments:
Warren, Thanks you have raised some interesting and thought-provoking questions. 1. The future of Hyperion's autonomy from underlying ERP systems. 2. The question of bandwith for Hyperion when the relationship with Oracle is more pressured by ownership. To name the most obvious ones for me. Craig Schiff of BPM Partners also views the Hype/Oracle M&A with unique perspective. Good stuff, both excellent reading for those interested in the BPM Space.
Hi,
thank you for your comments. Interesting point about Hyperion (or should I say Oracle BPM) being sold as a stand-alone product. Its anyone's guess but in time to come maybe you are right - possibly no hyperion as a stand-alone product anymore
Hi,
my employer has tasked a couple of us to perform due diligence in order to bring in a big BI suite.
Due diligence in this space is daunting to say the least, given all vendors are basically offering the same functionality, and, given that we are newbies in BI.
Could you impart any words on wisdom on what you think is due diligence?
thanks
Manny
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