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Case Studies

Bigger Isn't Always Better

Senior Vice President Thomas Kurian on the Oracle and Hyperion Combination

By Katheryn Potterf

July 2007

Oracle's acquisition of Hyperion means that that the top provider of business intelligence (BI) solutions and the top provider of performance management software are now an unbeatable combination. In an interview with Thomas Kurian, Oracle's senior vice president of server technologies development, Kurian contends that organizations benefit because they get the best of both solutions and also obtain critical business insight.

The Hyperion acquisition was an effective move because corporate performance management and BI are strategic priorities for Oracle. The acquisition helps Oracle move further along its efforts to create a new enterprise performance management system that offers managers and executives a unified view of information and the ability to manage their business more effectively. Kurian believes that because of the acquisition, Oracle is the sole vendor offering all the different enterprise performance management components from a product perspective, to build out such a system. In addition, Oracle is a leader in this market, in terms of revenue, market share, and analyst perception.

Read how Oracle's BI strategy is designed around three fundamental pillar: a complete and integrated suite of BI tools; a comprehensive suite of operational business intelligence applications called Oracle Business Intelligence; and plans to integrate these tools and operational analytic applications with Hyperion [System 9] Financial Management applications.

PROFIT: Why did Oracle acquire Hyperion?

KURIAN: Corporate performance management and BI are strategic priorities for Oracle. The rationale that drove the Hyperion acquisition was simple: We believe a new enterprise performance management system is emerging—one that provides managers and executives with a unified view of information enabling them to manage their business more effectively. This enterprise performance management system will integrate information from an organization's transaction processing systems [enterprise resource planning (ERP) and customer relationship management (CRM) systems]; its operational business intelligence systems [reporting and analysis systems]; and its financial management systems [planning, budgeting, and consolidation systems]. Together, Oracle and Hyperion offer the industry's first complete and integrated enterprise performance management system. This unified product offering will enable our customers to gain greater business insight; link the financial and operational sides of their business more tightly to drive better decision; and will, in turn, drive stronger financial and operational results.

Through this acquisition, Oracle is the only vendor to offer all the different components, from a product perspective, to build out such a system. And, we're the only vendor that's considered a leader in this space, in terms of market share, revenue, and analyst perception. This complete enterprise performance system will offer Oracle, Hyperion, and SAP customers enormous value—including the highest quality of information and the ability to define better plans and to link them with the insight from their operational business intelligence systems.

PROFIT: What is Oracle's overall BI strategy?

KURIAN: Our BI strategy is designed around three fundamental pillars. First, a complete and integrated suite of BI tools—spanning data integration, query and analysis, reporting, dashboards, metrics management, and scorecards—that provide a consistent and accurate view of information across Oracle and non-Oracle datasources. Second, a comprehensive suite of operational business intelligence applications called Oracle Business Intelligence Applications that provides a prepackaged data warehouse model, prepackaged ETL [extract, transform, and load] maps, and prepackaged dashboards and aggregate information for analysis from the various modules of Oracle Applications suites, including Oracle's Siebel, Oracle E-Business Suite, Oracle's PeopleSoft, and our vertical applications. Third, to integrate these tools and operational analytic applications with Hyperion [System 9] Financial Management applications—including financial planning, budgeting, consolidation, and financial reporting solutions.

Our strategy is not just to offer these three pillars, but to integrate these three elements into a single unified enterprise performance management system that allows our customers to get a unified view of information from their transaction systems, operational business intelligence systems, and financial management systems. This strategy has driven a very rapid growth in our business intelligence product capability, market share, and customer adoption over the past 12 to 18 months.

We are also very proud that leading analyst firms have recognized Oracle's vision and execution in this market by making Oracle one of only two vendors that is a leader in both the business intelligence tools market and the performance management market. IDC has also recognized Oracle as the worldwide leader in the overall category of business analytics software.

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