Enterprise System Spectator blog: ERP and enterprise system vendor evaluation, selection, and implementation.

The Enterprise System Spectator

Thursday, March 01, 2007

Oracle hustles Hyperion

Oracle is seeking to make an addition to its series of acquisitions in the enterprise software space. The target this time is Hyperion (HYSL), one of the leading vendors of business intelligence software. The deal was announced today.

The parties have agreed to a cash offer of $52 per share, or approximately $3.3 billion. The offer is about 21% above Hyperion's stock price prior to the announcement.

Although this is a big deal, there's really not much risk. Hyperion is already an Oracle partner. In fact, it runs Oracle's E-Business Suite and Siebel systems internally. There is also not a great deal of overlap with Oracle's existing offerings. Business intelligence is a complementary product, and these solutions tend to integrate easily with other products. There is a little overlap with some of Oracle's own reporting products, but not much. When customers want industrial strength performance management tools, or business analytics, they typically go to vendors like Hyperion.

The market for business intelligence products has been one of the brighter spots in enterprise software in the past few years. Because of Sarbanes-Oxley, companies are paying more attention to monitoring business performance, and vendors like Hyperion have responded with more products to analyze trends in the mountains of data produce transactional systems produce. As a result, the market for these products is growing at a compound annual rate of 11% per year, well above the business software market generally.

Another plus for this deal: Hyperion is a Tier I vendor, with 12,000 customers, including 91 of the U.S. largest 100 companies. Many of these companies are also customers of SAP. So, ultimately, this deal could give Oracle another avenue into these sites.

The market also seems to view the deal positively. Oracle's share price is up over 3% a few hours after the deal was announced. The transaction is expected to close in April.

Check out Hyperion's website for more information. There is quite a bit of material there about the Oracle/Hyperion deal.

Update: Computerworld is reporting mixed opinions from Hyperion users on the deal.

Update, Mar. 12: Clint Boulton points out that Hyperion's products are not all complementary to Oracle's. Specifically, Oracle's own financial planning and budgeting applications and the excellent performance management products that it acquired from PeopleSoft. He quotes Keith Gile at Business Objects (a Hyperion competitor), who listened in on an Oracle conference call about the deal:
"Basically, their management came on the phone and pretty much threw 'em under the bus and said these things weren't good enough, and therefore, "we went out and bought a pure-play, best-of-breed performance management solution in Hyperion."
So, in the view of Gile and Boulton, the addition of Hyperion's products threaten to dilute some of the products Oracle already has in its portfolio.

Related posts
Rumor mill: Oracle to acquire SAP
Oracle does the right thing with open source acquisition

Philly pulls plug on failed Oracle project
Two more business intelligence vendors are hooking up
Vendor consolidation hits business intelligence sector

by Frank Scavo, 3/01/2007 08:39:00 AM | permalink | e-mail this!

 Reader Comments:

Post a Comment

Links to this post:


Powered by Blogger

(c) 2002-2018, Frank Scavo.

Independent analysis of issues and trends in enterprise applications software and the strengths, weaknesses, advantages, and disadvantages of the vendors that provide them.

About the Enterprise System Spectator.

Frank Scavo Send tips, rumors, gossip, and feedback to Frank Scavo, at .

I'm interested in hearing about best practices, lessons learned, horror stories, and case studies of success or failure.

Selecting a new enterprise system can be a difficult decision. My consulting firm, Strativa, offers assistance that is independent and unbiased. For information on how we can help your organization make and carry out these decisions, write to me.

My IT research firm, Computer Economics provides metrics for IT management, such as IT spending and staffing benchmarks, technology adoption and investment trends, IT management best practices, IT salaries, outsourcing statistics, and more.

Go to latest postings

Search the Spectator!
Join over 1,700 subscribers on the Spectator email list!
Max. 1-2 times/month.
Easy one-click to unsubscribe anytime.

Follow me on Twitter
My RSS feed RSS News Feed

Computer Economics
Outsourcing Statistics
IT Spending and Staffing Benchmarks
IT Staffing Ratios
IT Management Best Practices
Worldwide Technology Trends
IT Salary Report


2014 Best Independent ERP Blog - Winner 2013 Best ERP Writer - Winner Constant Contact 2010 All Star Technobabble Top 100 Analyst Blogs

Key References
Strativa: Business strategy consulting, strategic planning
Strativa: IT strategy consulting
Strativa: Business process improvement, process mapping, consultants
Strativa: IT due diligence
Strativa: ERP software selection consulting and vendor evaluation
Strativa: CRM software selection consulting and vendor evaluation
Strativa: Project management consulting, change management
StreetWolf: Digital creative studio specializing in web, mobile and social applications
Enterprise IT News: diginomica

Spectator Archives
May 2002
June 2002
July 2002
August 2002
September 2002
October 2002
November 2002
December 2002
January 2003
February 2003
March 2003
April 2003
May 2003
June 2003
July 2003
August 2003
September 2003
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
May 2007
June 2007
July 2007
August 2007
September 2007
October 2007
November 2007
December 2007
January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008
January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
July 2009
August 2009
September 2009
October 2009
November 2009
December 2009
January 2010
February 2010
March 2010
April 2010
June 2010
July 2010
August 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
April 2011
May 2011
July 2011
August 2011
September 2011
October 2011
November 2011
December 2011
January 2012
February 2012
March 2012
April 2012
May 2012
June 2012
July 2012
September 2012
October 2012
December 2012
January 2013
February 2013
March 2013
May 2013
June 2013
July 2013
September 2013
October 2013
December 2013
January 2014
February 2014
March 2014
April 2014
May 2014
June 2014
July 2014
August 2014
September 2014
October 2014
November 2014
December 2014
February 2015
March 2015
April 2015
May 2015
June 2015
July 2015
September 2015
October 2015
November 2015
February 2016
May 2016
June 2016
July 2016
August 2016
September 2016
October 2016
January 2017
February 2017
May 2017
June 2017
October 2017
January 2018
April 2018
May 2018
Latest postings