Amazon.com vs. Ariba: The B2B Merchant Experience to Procurement is in for a Storm of Change [PRO]
We’ve long thought that Amazon, with its AmazonSupply, will eventually own the small and medium sized business (SMB) market for eProcurement – a space that is littered with the purchasing bones of many a vendor that has tried to enter. For years, Ariba failed to successfully pursue the market, among others. Today, Coupa, Verian, Wax Digital, Puridom, Proactis, and a few others have all had some traction with SMBs in purchase-to-pay (P2P). But generally speaking, this market is untapped from a centralized, automated technology buying perspective. Amazon knows this – and we think it’s why they’re currently looking to hire someone with a “cXML, OCI and e-procurement” background to “manage e-procurement integration projects with customers and supplier networks” (more on this in a minute). As soon as Amazon builds out a Platform-as-a-service (PaaS) offering and app marketplace to integrate to AWS, it will become way more interesting than just a re-skinned Amazon (i.e., the aforementioned AmazonSupply). In this Spend Matters PRO analysis, Managing Director Jason Busch and Chief Research Officer Pierre Mitchell provide their candid perspective on Amazon’s potential in the eProcurement and P2P market, in part based on evidence they’re already seeing in Amazon’s business already.