Feeds

Oracle buys Hyperion, turns heat on SAP

Mixes with new crowd

Top 5 reasons to deploy VMware with Tegile

Oracle is ending its brief acquisition lull with one of its largest software deals. The database giant will buy Hyperion Solutions, also an Oracle competitor in the business intelligence market and an important partner of SAP, for $3.3bn, or $52 a share - a handsome 21 per cent premium for stockholders.

In the last three years Oracle has spent more than $20bn buying 25 software companies, with its most recent deal in December. Oracle's acquisitions are designed to drive growth and add specialized functionality to its middleware and applications.

Hyperion stands out for two reasons, both connected to its battle for market and mindshare against SAP - the world's largest supplier of business applications and Oracle's avowed foe.

Hyperion opens up a market of 12,000 customers to Oracle's middleware and applications business. The company specialises in financial management applications, which means that Oracle will consolidate its presence among chief financial officers, and it will ensure Oracle's brand is right under the noses of the individuals who sign the checks for all IT purchases.

The purchase also means that Hyperion data held in SAP systems will be served up through an Oracle-owned front-end.

According to Oracle president Charles Phillips, Hyperion is Oracle's latest move in a strategy to expand its offerings among SAP customers.

"Thousands of SAP customers rely on Hyperion as their financial consolidation, analysis and reporting system of record... now Oracle's Hyperion software will be the lens through which SAP's most important customers view and analyze their underlying SAP ERP data," he said.

The deal is certain to cause SAP discomfort on Wall Street and among customer. It is far from clear, though, whether Oracle will achieve the growth it - and investors - expect through acquisition.

Oracle disappointed Wall Street last quarter announcing a relatively puny 28 per cent increase in license revenue compared to 80 per cent in the prior quarter, following its acquisition spree.

Importantly, Oracle has taken steps to ensure those customers don't defect to SAP or other BI vendors like Business Objects, which will now try to exploit uncertainties over product development and roadmaps caused by such deals. Oracle has promised to increase R&D for Hyperion and to offer support for Hyperion running on non-Oracle databases and running with non-Oracle applications. ®

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.