Coupa Opens New Middle-Market Front with P2P, T&E Packages on AWS Marketplace

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Coupa is more aggressively targeting small and medium-sized businesses, using Amazon’s reach and infrastructure to sell its spend management solutions directly online.

The San Mateo, California-based provider announced Monday its procure-to-pay (P2P) and expense management (T&E) solutions are now available on AWS Marketplace. Prospective users can now purchase, migrate and begin using Coupa’s spend management solutions directly from Amazon Web Services’ online software store, provided their company fits several criteria.

The guidelines and limitations for the listed packages make Coupa’s intentions clear: the offerings target small and medium-sized enterprises (SME). Complete with comparatively lower price points and a eight-week implementation period, Coupa’s AWS packages present a low-touch way for SMEs to try out Coupa, while the provider extends its influence beyond the Fortune 500 companies it typically serves.

“Coupa doesn't stop surprising, now with a potential game-changer for all of the big P2P and T&E vendors that seek to win the SME market,” said Xavier Olivera, lead P2P analyst at Spend Matters. “This new initiative with AWS seems to be a step forward in Coupa’s strategy to conquer this market and remain one of the undisputed leaders for the procurement technology sector.”

Capabilities and Limitations

The two packages offer pared down versions of Coupa’s solutions, each with specific limitations.

Coupa Procure-to-Pay for AWS provides a cloud-based tool to reduce costs, manage risk and automate back office tasks related to indirect spend for up to 125 users. Automated integrations for the package include accounts, suppliers, OK2Pay and payments. Users can also access Coupa Advantage services for pre-negotiated discounts and enable two punchouts from a list of 125 options.

The P2P package is limited to US-based companies with fewer than 500 employees that have the NetSuite ERP in production and can be deployed in a single location. No other Coupa applications, such as sourcing, contracts, analytics or inventory management, are included in the package. A 36-month license is listed at $288,000.

Coupa Expense Management for AWS offers a unified platform for expense reports, invoices, POs, contracts and supplier records, as well as anti-fraud detection capabilities and voice-based expense creation. Users can also add one credit card to the accounts (Visa, MasterCard or American Express).

The T&E package is also limited to US-based companies using the NetSuite ERP, with automated integration to ERP for OK2Pay. Companies can run 250 reports per month (3,000 per year, or 9,000 over the full course of the subscription) with the 36-month license for a list price of $96,000.

Questions Remain

While Coupa’s AWS packages offer a “light” version of its solution in a high-traffic setting, two key questions remain about the strategy.

The first concerns price. Are mid-size firms really willing to pay $288,000 for a three-year P2P contract (or $96,000 for a T&E solution) through AWS? While the price points are comparatively lower than large, full-scale implementations that can run into the millions, paying list price could give some organizations sticker shock.

This leads to the second question: Will companies be willing to sign a three-year contract at these price points without the option of an on-site demo, including workshops and Q&A sessions? The availability of Coupa solutions through an online channel increases sales opportunities, to be sure, but whether procurement groups will be willing to purchase P2P and T&E solutions in a way similar to how they purchase iPhone apps remains to be seen.

At the very least, setting up shop on AWS gives Coupa a way to increase visibility with SMEs, putting the provider’s name and capabilities in front of an audience that is increasingly capturing vendors’ attention.

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