Mickey North Rizza Takes to the Virtual Airwaves

Earlier this fall, AMR's Mickey North Rizza took to the virtual airwaves, recording a podcast with Tony Friscia, AMR's co-founder and CEO. The recording is offered as a free download on the eWeek website. In the podcast, Mickey talks about growth trends in the sector. For example, according to AMR, the size of the overall procurement and sourcing technology market will rise from $2.4 billion in 2006 to $3.5 billion in 2011. Among the major growth trends in the sector that Mickey cites, look for investments to shift from sourcing -- the largest investment focus in recent years -- into such areas as supplier connectivity, visibility, diversity supplier management and contract management, along with other areas. Companies are also starting to make investments to create buying groups for lower tier suppliers.

From a current market size perspective, Mickey suggests that according to AMR's research, SAP is the largest vendor in the sector followed by the Ariba/Procuri combination in second position and Oracle in third. But as always, one should take market sizing numbers given by ERP vendors with many grains of salt. After all, there are many ways of reporting and counting deal activity and volume when companies sell solutions in multiple areas. Given this, I would argue that Ariba and Emptoris, among others, are at least if not more influential -- and potentially as large in reality -- in the overall market as the ERP providers (especially outside of the core SRM and transaction processing areas).

Jason Busch

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