Insights from “Gartner Magic Quadrant Report for CPM”

Insights from “Gartner Magic Quadrant Report for CPM” rating Oracle Hyperion as the leader

Gartner’s latest Magic Quadrant report for Corporate Performance Management (CPM) released on 19-Mar-2014 has rated Oracle EPM offering, Hyperion suite of EPM products, as the leader amongst all the CPM vendors.

Well, it is not very surprising to hear this (considering the past performance by Oracle Hyperion vis-a-vis other CPM vendors and being associated with Oracle Hyperion product suite since almost a decade), but definitely the results on quadrant and further information shared within the report are really interesting. My observations as below:

=> SAP & Oracle are placed almost together. Oracle beats SAP by maybe few basis points but strides made by SAP Hana probably had an impact on the results. We’ve lost few cases to SAP Hana on account of in-memory analytic features but I personally believe that most of the growth would be derived from SMB market due to which cloud offering on EPM is gaining recognition and more impetus amongst the big three players. Considering the same, the next year results would definitely account for cloud offerings by these three players (as pointed out within the report – Oracle was supposed to launch its EPM on cloud offering which is now already live)

=> IBM is a distant third and no one other CPM vendor is listed within the leadership quadrant. However, it seems that the quadrant may become more interesting next time with few other players in the Visionaries and Challengers Quandrant trying to gain make an entry into the leadership quadrant.

=> Gartner has a specific mention for Oracle regarding the low score achieved in CPM customer satisfaction survey and all the mentioned reasons are surprisingly controllable by Oracle. The reasons include: Contract Negotiation, Consulting Services and Help Desk Support.

=> It proves that one may have the best product in the market but if the company is unable to manage the customer requirements by way of support and quality service providers, you may risk being downgraded by the customers. In one of the meetings, a senior consulting member quoted, “In more than 90% of the projects that fail, it is not the problem of tool / system”. None of the above three highlighted issues in the report are non-manageable but somehow it seems that Oracle might have lost its way in the middle path to EPM leadership thereby allowing other players to gain substantially better in terms of customer satisfaction.

=>  I wish to also highlight Dodeca by Applied OLAP (a beautiful piece of software from an Essbase master, Tim Tow) which plugs in the gap between spreadsheet flexibility and Essbase Cube analytical abilities. During our demo session with Applied OLAP, we were informed of the fact that Essbase used to always score less in terms of BI customer satisfaction surveys until 2012 wherein it was the first time that Essbase actually was ranked #1 in BI Survey and  majority of the responses were from users who used Dodeca in conjunction with Essbase rather than standalone Essbase Excel Add-in. This point only goeas ahead in assisting the statement that a good product requires to be accompanied by usability factor to be termed as a market leader. Details about the BI survey report can be located at Applied OLAP website – here.

=> We firmly believe that in order for a product to be highly successful in market alongwith higher consumer satisfaction, it needs to keep things simple. Currently, majority of the CPM tools may have integration with MS Office as a standard functionality but what users actually need is a simple tool to ensure that his requirements are met.

=> 90% of the customers (business team as well as IT) that I’ve met have always wanted to keep things simple. Businesses are now more concerned on TCO being increased due to additional IT burden and would even opt for a solution which ensures minimal IT interference while ensuring the data security within day to day business operations.

P.S.: It is with the philosophy of simplicity, that we have developed Smart Metadata Creator System (SMCS) which targets finance business owners to take ownership of the dimensional hierarchy with minimal Oracle Hyperion Planning knowledge for ease in design process and also safeguarding possible future data mismatch and having a positive impact on the entire project timeline.

Disclaimer: Dodeca and all the associated trademarks are owned by Applied OLAP and / or Mr. Tim Tow and Innov8 Infinite is not yet a member of the Applied OLAP partnership network. The firm do intends to include the product within its solution portfolio in future but it has not influenced our decision towards inclusion / exclusion of any of the above information.