COMPUTER BUSINESS REVIEW

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Issue Date: October 2007

Oracle and SAP go after SME market

1 October 2007
Adrian van der Merwe, MD, 8th Man Consulting

Oracle bought Hyperion because it needed a dedicated enterprise performance management (EPM, aka BPM/BI) suite to report against its transactional systems.
Oracle did have a product suite, Fusion, but its recently acquired Hyperion product suite is used by a large portion of the SAP customer base.
For Oracle, this represented the ideal opportunity to position itself as providing a heterogeneous product set rather than the traditional perception of Oracle providing a homogenous product set.
However, at the same time, SAP, for the first time in its history, bought a little known company, OutlookSoft.
OutlookSoft is a competitor to Hyperion, and although with a smaller install base, it has been making inroads into the SME market.
Hyperion has traditionally been seen as the large corporate player with a product selection which does not endear itself to the SME market based on its cost of ownership and complexity, a view which Oracle wants to change.
SAP has targeted the SME market as a growth area, along with Oracle, and with the pricing and partner network has even managed to secure clients such as Woodmead’s Flowerspot!
With the acquisition of OutlookSoft, SAP is going to be aggressively going after the SME market. Oracle is after the same market, but will need to change the perception of Hyperion being an exclusively large corporate brand. Oracle’s pricing of the Hyperion product suite and their partner model will determine how successful it is.


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