Oracle Buys Hyperion

March 1, 2007 from CRN – “Oracle said it would create a more comprehensive business intelligence software suite following its US$3.3 billion acquisition of Hyperion on Thursday. The two firms said the deal, which is expected to close sometime next month, would allow Oracle to integrate Hyperion's business performance management software into its own business intelligence (BI) product. Oracle's first BI product was released at the beginning of last year.

Hyperion started out primarily as a provider of financial reporting services but has also become successful with its online analytical processing (OLAP) engine, which allows users to quickly analyze complex queries. A few years ago, Hyperion made a strategic acquisition of its own when it spent US$140 million to buy Brio, which gave it an improved query tool…”

180 View – The acquisition represents the growing trend by ERP vendors to provide an end-to-end solution. Initially ERP was a back office application (financials, distribution…) Then it included the front office (CRM, eCommerce…). And now it includes Corporate Performance Management / Business Intelligence. In the short run, this aquisition should be good for all concerned. But what happens when sales fall off as a result of Hyperion prospects who are reluctant to acquire Hyperion because they don't use Oracle ERP systems?