BI specialist Hyperion buys UpStream Software

UpStream's tools will let Hyperion users track data in financial reports back to its source

Hyperion is the latest business intelligence (BI) vendor to bolster its software to assure data quality, after it agreed to acquire data assurance specialist UpStream Software.

Hyperion said it plans to integrate UpStream's data quality and workflow functionality with its own business performance management (BPM) suite, so that users will be able to seamlessly track the movement of data featured in financial reports back to its source.

Tom Shea, president and chief executive of UpStream, said in a statement that the growing complexity of financial reports coupled with increasingly stringent accountancy regulations is increasing demand for data quality management tools so users can check the veracity of financial data in BI reports.

This view is endorsed by analyst firm Forrester Research, which estimates the market for such tools will grow 17 percent this year to $406m.

Hyperion predicted that the deal would cause few integration problems. It said Upstream is a long-term partner and that joint customers such as Honeywell and Unisys have already integrated the two vendors' software to automate data collection processes and provide data audit trails back to source systems.

Helena Schwenk of analyst Ovum said the deal underlined the growing consolidation of the BI and data quality software markets as customers look for BI systems that can also help them ensure regulatory compliance.

"This is the third major data quality deal this year, following Informatica's acquisition of Similarity and Business Objects' purchase of FirstLogic said Schwenk. "However, what is interesting about the Hyperion deal is that Upstream is more focused on financial data quality, while the Informatica and Business Objects' deals appeared to be more focused on fleshing out their data integration capabilities."