Oracle Hyperion EPM: Three Reasons Companies Trust Third Party Experts to Manage Their Applications
IT teams are under constant pressure to drive down the cost of mission-critical business applications without sacrificing the quality of service delivered. That pressure has brought to the forefront questions and decisions about what functions to outsource and when, understanding that making the move can generate significant wins for an IT organization.
Why Outsource Enterprise Performance Management (EPM) Systems Such As Oracle Hyperion?
While some companies choose to keep their mission-critical ERP or transactional systems in-house, more companies are engaging trusted partners to move and manage their EPM systems in the cloud. Why? Here are the most common reasons Velocity hears from companies considering this approach:
Risk Mitigation: Talent Acquisition/Retention Challenges – Finding, and ultimately retaining, quality Hyperion resources can be a significant source of pain for IT and finance organizations. Hyperion talent is in high demand and acquiring it can be an expensive venture. Many companies are constrained by their geography and find it difficult to attract experienced Hyperion resources to more remote corporate headquarter locations. Even areas with an unlimited supply of Hyperion talent are presented with the challenges of turnover: the real and intangible costs to recruit, on-board, train, and retain a new Hyperion resource every 12 months can wreak havoc on IT/Finance budgets and impede ongoing business processes. Outsourcing to a trusted managed services provider, like Velocity, can eliminate these costs and reduce organizational risk.
Focus on Core Competencies: Reduce Conflict Between IT and the Line of Business – EPM applications are often new to companies’ IT portfolios and the skillset required to manage these solutions can be unique as compared to managing legacy application portfolios. I speak with IT executives every week whose teams are exhausted from trying to host/manage Hyperion only to receive constant complaints from Finance about performance, availability and functionality. My advice to them is simple: assign that burden to a trusted partner who knows Hyperion and return your team’s focus to managing the applications that support your daily business operations. I can’t tell you how many IT teams I’ve seen struggling with Hyperion because they’re trying to manage it like an ERP system or an email platform. It simply does not work like that. Enterprises should focus their valuable resources on systems that align with the business’ core competencies. If your business manufactures specialty chemicals, deploy your IT resources in support of your process manufacturing systems instead of your financial reporting application. It’s about opportunity cost.
Cost reduction: Controlling the Total Cost of Ownership (TCO) for Hyperion – As an IT or Finance executive, you’ve now selected the Hyperion modules your organization needs, you’ve expended the capital to purchase licenses and hardware and the implementation is nearly complete on-time and on-budget. So, all your costs are accounted for and incurred, right? Wrong. Between database administrators, Hyperion infrastructure resources, functional experts, and developers, many case studies indicate that the annual cost to support Hyperion in-house on a 24/7 basis can range from $150,000 to $500,000. To make matters worse, those numbers don’t include the costs of fractionalized resources or the risks associated with inevitable attrition. Even if your company plans to host Hyperion in-house, remote managed services from a partner like Velocity can easily deliver a 50%+ reduction, or a savings of $75,000 to $250,000, in annual costs to support your Hyperion applications. Add to that number the value of increased service quality and watch the cost of ownership plummet and the return on investment soar.
While the decision criteria to outsource EPM applications may vary for every organization, the drivers above represent a compelling business case in almost every scenario.
Ready to save on management of your Hyperion or EPM apps?
In his role as Senior Director, Enterprise Performance Management (EPM) & Business Intelligence (BI) Lines of Business, Michael Piloto leads the global sales and delivery of outsourcing, managed services, consulting and program/project management for Hyperion, OneStream, Oracle BI, Qlik and Tableau.