Under the agreement, the two companies will combine Comshare's CPM software with Microsoft's SQL Server 2000 Analysis Services to offer organisations a flexible BI application designed to build customer reporting and analysis applications.
Microsoft is perhaps the biggest player yet to enter the burgeoning CPM or business performance management space, which has attracted the likes of Hyperion, Cognos, Business Objects and Ascential. The recent accounting scandals swirling around Enron and WorldCom have highlighted the need for executives to maintain a tight rein on financial data, according to analysts.
"We're looking at a blessing of the space with Microsoft's entry," John Van Decker, an analyst at Meta Group, said. "We're looking at a space that has been increasingly interesting to Global 2000 companies. They have implemented business planning solutions and are looking to close the loop. You're seeing the ERP vendors recognising this as the next important space."
Companies that deploy the Comshare solution using Microsoft technologies will benefit from integrating planning, budgeting, forecasting, financial consolidation, management reporting and analysis into a single system, according to Comshare officials. Comshare CPM and SQL Server 2000 Analysis Services help companies with OLAP to formulate and execute the strategic vision for the company, Rod Radojevick, Comshare's senior manager of product marketing, said.
"It really starts with setting their top-level strategies and then linking those down to their operational budgets or forecasts," Radojevick said. "All the information will allow managers to make effective business decisions. We set high-level plans and link them down to individual managers' desktops, making them responsible on an ongoing basis."
While the CPM space is increasingly packed with different vendors' offerings, these solutions must feature a marriage of operational functionality of an ERP system with the financial analytics, Alan Yong, director of financial analytics for Aberdeen Group, said.
"The CPM value proposition has to be deeply tied to a budget and planning application," he said. "Microsoft wanted to get into the enterprise business applications market and they were looking for someone who could bolster their existing SQL Server 2000 OLAP tool."