Oracle's real target with Hyperion: CFOs

Oracle's real target with Hyperion: CFOs

Summary: Oracle paid $3.3 billion for Hyperion to get better access to chief financial officers.

TOPICS: Oracle

Oracle paid $3.3 billion for Hyperion to get better access to chief financial officers.

That's the biggest takeaway from Oracle's brief conference call on the Hyperion acquisition (Techmeme discussion). Yes, Oracle gets a strong business intelligence company. Yes, Hyperion gives Oracle more BI heft and nice dashboards. But this deal is all about selling the folks that pay the bills--CFOs.

Oracle president Charles Phillips acknowledged that Hyperion's 1,900 strong salesforce, which primarily deals with CFOs, was a big attraction. Hyperion's software wraps up financial information into a dashboard and helps companies deliver their regulatory filings to the SEC. While CFOs may write checks for other applications they know Hyperion's software well. 

"There are a lot of other tools we have that we can sell. Normally the CIO reports to the CFO so that relationship was important," said Phillips. 

Oracle's game plan: Use Hyperion's access to the CFO office to sell other applications. CIOs are critical, but CFOs call the shots. And if Oracle has any shot of poaching SAP customers--easier said than done--it needs CFOs on its side. In a nutshell, the Hyperion purchase is about access. Phillips said:

"Analytical applications are critical to CFO's office. This is the system of record for regulatory filings. They have a strong reputation with CFOs. That allows us to focus CFOs on other applications."

Topic: Oracle

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  • Circling SAP. Take that! Now CFO access.

    Remeber when SAP pigeon-holed Oracle as a Database only vendor. With Hyperion Oracle has access to the CFO. With Siebel they have access to the SVP of Sales & Marketing. With PSFT to the SVP of Human Resoruces. And in Manufacturing SAP lost WILD, the process intensive CPG in SAP's backyard to Oracle's Apps.
    Time to wake up Henning. You are circled in and your smart talking R&D chief is not delivering the goods. Oracle just gets IT...And the German's are stuck in their old world view and think this is about applications. Think again guys.
  • CFO access?

    I'm a tad mystified by the CFO access argument. I buy many of the other reasons for this takeover, but not this one.

    It is a sad-poor reflection on the Oracle salesforce and Oracle's current offerings if they aren't able to "access" the CFO today.

    IMHO...This is a good move by Oracle, but it isnt as gamechanging as some make it out to be.