Feeds

Oracle pays $3.3bn for Hyperion

Good news for whom?

Secure remote control for conventional and virtual desktops

Comment Last week, Oracle, one of the industry giants, announced that it has agreed to buy Hyperion Solutions Corporation, by no means a small ISV, for $52 per share - thereby valuing the acquisition at approximately $3.3bn.

Hyperion is a supplier of specialist performance management software solutions, a space that is growing in importance as organisations seek to make ever better use of the vast volumes of data they habitually acquire as part of their daily operation. It is fair to say that extracting valuable business information from stored data is now a prime objective.

In many respects the addition of the Hyperion software solutions makes perfect sense. Hyperion's software is already well integrated with much of the growing portfolio of applications that now constitutes a sizeable fraction of the offerings available from Oracle. Hyperion has solutions that operate in a number of environments and has built speciality offerings that explicitly interoperate with SAP, Microsoft, IBM, HP and Teradata systems as well as with Oracle deployments.

So who really wins from the acquisition? Well, clearly the shareholders of Hyperion will be happy. The $52 per share offer is well ahead of the market value enjoyed by the stock over most of the last five years. But this is only to be expected - after all, no one with any sense would sell their stock for less than the market value.

Clearly Oracle expects to gain advantages from the acquisition and the direct financial benefits are possibly not the most valuable in the medium and long term pictures. It maybe that the leap forward supplied by the new BI analytics will prove to deliver great benefits to Oracle, especially as it looks to extend its deliverables to organisations utilising SAP as their main business management solution.

The major test for many current customers of Hyperion will lie in how well Oracle maintains Hyperion's ability to operate across a broad portfolio of offerings. Hyperion has gained much benefit from its ability to extract valuable business performance information in many environments and Oracle will face a major challenge to keep these relationships functioning, especially as it is also a direct competitor with many of these vendors.

But that is increasingly the way of the world. Competition and co-operation stand side by side in many ISV relationships. Oracle has considerable experience here but as it becomes established as a competitor rather than as a base partner it will need to enhance its corporate equivalent of key interpersonal skills in order to keep Hyperion's development on an even keel going forward, essential if it is to retain existing customers and garner new ones. The company will also need to learn how to communicate with some new target audiences, especially CFOs and other financial managers.

My colleague Dale Vile has pointed out that the investment and banging of drums in relation to embedded analytics is today a key part of the Oracle fusion platform and proposition. This means that the company now has a customer base that is almost guaranteed to face some serious challenges in the future as they resolve the differences between code-lines.

From an Oracle perspective, the acquisition is tactically important as part of its "SAP surround" strategy to coral and constrain SAP's activities to its core ERP domain. Oracle wants to win all of the middleware, portal, and BI "white space" between applications and to prevent SAP's Netweaver, Enterprise Portal and BW from gathering momentum. It will be interesting to see how SAP and the other players in these areas respond.

Copyright © 2007, IT-Analysis.com

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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?