Oracle Faces Challenges After Acquiring Endeca

February 6, 2012

Forrester’s Boris Evelson recently reported on Oracle’s October acquisition of the enterprise search and data management solution provider Endeca in the blog post “Oracle Leapfrogs BI Competitors by Acquiring Endeca.”

In the post, Evelson argues that this was a smart move on the part of Oracle because it takes the company from playing mostly in the traditional BI space to integrating unharmonized data sources and performing search-based BI.

With this in mind Evelson remarks:

This acquisition now really differentiates Oracle’s BI suite, but it will not be without significant challenges for Oracle and Endeca. OBIEE is the strategic BI platform at Oracle. No ifs, ands, or buts. Even the ubiquitous Essbase is taking a back seat by being positioned mostly as a cubing engine with OBIEE as a recommended front end. As the first order of business, I expect the combined teams to first come up with an SQL or MDX wrapper for Endeca so that OBIEE can be used to access its index. Beyond that, I expect that Oracle will position Endeca as a special-purpose BI tool.

Our opinion on the matter is this, Endeca’s technology is secondary to the firm’s consulting services “wrapper” and scaling, particularly for big data in near real time, remains a challenge. We don’t have a dog in the fight and some of the pundits, not only have a dog, but have a stake in the dog show.

Jasmine Ashton, February 6, 2012

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.