Analysts lay into hyperion deal

Oracle’s bid to buy business intelligence (BI) firm Hyperion has come under fire from analysts, with customers being advised to keep a close eye on developments.

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By  Administrator Published  March 14, 2007

Oracle’s bid to buy business intelligence (BI) firm Hyperion has come under fire from analysts, with customers being advised to keep a close eye on developments.

At least one analyst is calling for the US$3.3 billion deal to be scrapped; Roth Capital Partners analyst Nathan Schneiderman said in a research note that shareholders should vote the deal down.

“We can’t agree with Hyperion’s board of directors and hope against hope that shareholders vote this deal down,” he wrote, claiming that it would leave “most of the spoils on the table for [Larry] Ellison.”

While Oracle has a policy of providing support for products it has acquired, Forrester Research is urging customers to try to re-negotiate their maintenance contracts to keep costs down.

“Hyperion customers should try to negotiate longer-term maintenance contracts that cost less than the current Oracle standard maintenance pricing and also cap their maintenance costs for the life time of their relationship,” said Ray Wang, principal analyst at Forrester Research.

Analysts have also expressed concern over the issue of product overlap.

The rationale behind Oracle’s buying Hyperion seems to be as much about attacking rival SAP as acquiring technology, with president Charles Phillips noting at the time of the announcement that many of SAP’s most important customers are also Hyperion customers.

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