Since Oracle really never competed toe to toe with IBM on applications and BI, the Hyperion acquisition is of a smaller significance for IBM than to other BI vendors. Watch for Oracle to acquire BEA, TIBCO or Informatica to leapfrog IBM in the EAI or middleware space.
It would be logical for IBM or SAP to pick up Cognos (not Business Objects, since it is still going through multiple product integration challenges) as the logical next large BI acquisition. SAP will probably make the first move, and once that happens, the IBM will look at Microstrategy or Information Builders as an alternative BI acquisition.
HP also clearly wants to be a BI player: they recently acquired a top boutique BI Systems Integrator, Knightsbridge, developed an integrated Data Warehousing platform – Neoview, and its NonStop database is used in some of the largest DW implementations. We would not be surprised if the next large BI acquisition comes from HP.
An orthogonal move could come from EMC or Sun, who have been Information Management players for years, with BI being a natural addition/extension. Notably absent from the rumors is Teradata, which in our opinion has to diversify into more layers of the BI “stack” beyond data warehousing to keep its competitive position.
A clear implication of this acquisition is for Oracle’s pureplay BI competitors: Cognos, Business Objects, Microstrategy, SAS and Information Builders, since a combined Oracle/Hyperion BI offering with best of breed components in every layer of the BI “stack” will become increasingly difficult to beat. While many of these vendors were quick to issue statements that they view this transaction as an "opportunity they intend to take advantage of" and that they remain "clear leaders" in the space, it is very clear that they are, as they should be, very concerned of Oracle's new position.
The transaction also has potentially huge implication for Microsoft, which has been giving away its OLAP product, Analysis Services, as part of SQLServer. While Oracle is also packaging OLAP (Express) with its relational database, it was always considered a lower end product to Microsoft. If Oracle decides to bundle Essbase as part of its overall database license, it could make significant cuts into Microsoft’s OLAP market share.
It is unclear whether Oracle will integrate, keep separate, or drop one of the clearly redundant products: multidimensional databases, Oracle Express (currently part of Oracle BI Server) and Essbase. However, if and when Oracle creates the same seamless integration they always had between its Express and relational databases with Essbase, it will truly become an awesome analytical database product hard to beat.
However, contrary to Oracle/Hyperion rosy statements of little if any product overlap, Oracle will face obvious and significant integration and product positioning challenges with multitude of overlapping and redundant products: Essbase vs. Express, Hyperion data integration and reporting tools (formerly Brio) vs. Oracle’s (including recently acquired Sunopsis), Hyperion Sales and Marketing Analytics vs. Siebel’s, plus some others.
For over a year we heard rumors that the dominos of the standalone, pureplay Business Intelligence vendors were about to start falling. We held our breath and took bets whether it was going to be Cognos, Business Objects or Hyperion. With the announcement of Hyperion acquisition Oracle did, again, what it does best — swiftly climed several notches higher on the BI food chain. It's important to note, though, that this acquisition goes a step further and actually repositions Oracle in two, not just one, market segments — performance management and business intelligence.