Spend Matters PRO Week: SciQuest and Spend Radar Customer Analysis (Part 2)

Please click here for the first installment of this series. <to highlight the depth of what's available on Spend Matters PRO, our premium subscription site, we'll be featuring full text analysis from select research briefs this week on Spend Matters public site. Spend Matters PRO is our response to the type of material we wanted (but never got) when we were customers of industry analyst research firms. It's fast, deep, pragmatic and insightful.

We hope you enjoy this weeklong preview of what's available on Spend Matters PRO. And if you like what you see, drop us a line. Below, we feature Part 2 of the full text of our initial analysis from September 28th offering customer specific recommendations for those impacted by the SciQuest/Spend Radar acquisition. For subscribers, the original full-text of this research brief can be found here: SciQuest Acquires Spend Radar: Company, Customer, Partner and Competitive Analysis and Recommendations

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In looking at the SciQuest/Spend Radar transaction from a customer perspective, our initial analysis suggests:

  • Spend Radar customers should pay close attention to contract language, including change of control clauses. SciQuest requested price increases from many AECsoft customers within 18 months of closing. It is unlikely SciQuest will broadly attempt to raise Spend Radar's pricing for accounts given they often priced at market (versus under, as AECsoft did). Still, this point warrants consideration
  • Spend Radar customers should familiarize themselves with alternatives in the market to best confront SciQuest for contract negotiation, taking the initiative rather than waiting for a longer-term renegotiation. Also, once the heavy upfront classification lifting is done at the start of spend analysis programs, ongoing refreshes aren't overly complicated for other providers to assume. For this and other reasons, Spend Radar customers should talk to a range of providers including BravoSolution, Ariba, Iasta, Zycus, Emptoris/IBM, SAP, Oracle, Opera/BIQ and others to investigate alternatives and become smart on the market. There should be no rush to switch out Spend Radar, mind you, but this knowledge provides a significant upper hand in negotiations
  • Spend Radar customers should attempt to understand how long their current support teams will be in place and the incentives for these individuals to stay post deal-close. Without the IP of the core delivery team, the IP of the broader Spend Radar solution set is materially diminished from a customer-facing perspective, especially when it comes to mapping basic spend cube information to third party datasets – including general supply risk, diversity, compliance, materials/item-level compliance, safety and related information
  • Spend Radar customers should consider what SciQuest has to offer in other areas including P2P, contract management and supplier management. While a bit of a hodge-podge of platforms at the moment (one can say the same thing of most of the larger providers in the sector) SciQuest's combination of assets is unique and highly valuable. SciQuest also has a well-deserved reputation for customer intimacy in larger accounts and best-of-breed capability in a number of areas. With the acquisition of Spend Radar, it can also truly call itself an end-to-end provider, and customers should no longer see it as just a P2P specialist in specific vertical markets

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- Jason Busch

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