Consolidation Time - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications
News
7/27/2003
10:24 PM
50%
50%

Consolidation Time

Hyperion and Business Objects acquisitions signal a maturing business-intelligence software sector where customers want fewer vendors

The long-anticipated consolidation of the business-intelligence software industry has begun. Last week, Hyperion Solutions Corp. revealed a deal to acquire query- and reporting-app vendor Brio Software Inc. for $142 million. That came just days after Business Objects SA moved to buy Crystal Decisions Inc., a developer of enterprise reporting software, for about $820 million.

SLOW BUT STEADYThe acquisitions aren't on the scale of Oracle's $7.5 billion effort to buy PeopleSoft or even PeopleSoft's $1.8 billion buyout of J.D. Edwards & Co. But in the fragmented business-intelligence sector, where the 10 largest vendors account for only 60% of the total market, according to IDC, the acquisitions of Crystal Decisions (with $270 million in annual sales) and Brio ($103 million in annual sales) are significant.

"It's a tell-tale sign of the maturing of an industry when consolidation occurs," says Gerald Cohen, president of Information Builders Inc., a $300 million business-intelligence software company. "Buyers have been telling us for a very long time that they want to deal with fewer vendors."

Consolidation will likely continue. Vendors are trying to build complete lines of reporting and analysis apps. That was Cognos Inc.'s goal when it bought financial-planning application vendor Adaytum Inc. for $160 million earlier this year. Vendors also are expanding beyond mainstream business intelligence into areas such as performance management because IBM, Microsoft, and Oracle are providing more basic reporting and analysis capabilities built into their database software.

Business Objects' buyout of Crystal Decisions could benefit users, says Tuan Chu, chief architect for the E-health system at Per-Se Technologies Inc. Per-Se processes reimbursement transactions for health-care providers and uses Crystal Decisions' software to provide clients with financial reports. But, Chu says, Per-Se's clients are asking for more advanced capabilities that Business Objects' products might offer.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Commentary
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
News
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll