Ariba Content

The Future of the Ariba Network with SAP (Part 2) [Plus+]

A major element of Ariba’s turnaround, furthered by the acquisition of Quadrem, was shifting the cost equation from buyers to suppliers for transactional procurement activity. By making suppliers pay more for transactional network fees, Ariba could effectively charge less for buyers and still maintain an attractive gross margin that was in line with smaller, best of breed competitors (like Coupa, that would often cost more than Ariba in subscription-fees after changing the business model).

The Future of the Ariba Network with SAP (Part 1) [Plus+]

SAP values the Ariba network not just in what it can deliver in connecting buyer and supplier indirect procurement transactions today, but for what it will be able to do in the future. For example, a next generation version of the Ariba network could be used to drive “inventory visibility, product design/engineering, vendor managed inventory (VMI) programs,” and related areas, SAP told Spend Matters.

PRO Analysis: DOJ and UK Fair Trading Office Clear SAP Acquisition of Ariba [Plus+]

Over the weekend, the US department of Justice (DOJ) cleared SAP’s announced acquisition of Ariba, a move that represents the last major hurdle that SAP had to overcome to close the deal. This follows news from earlier last week that the U.K. Office of Fair Trading also approved SAP’s announced acquisition of Ariba. The DOJ clearance was something we predicted on Spend Matters PRO (and Spend Matters), but the announcement was by no means certain. In fact, as we referenced previously this summer, once proposed acquisitions receive a second request, nothing is certain.

Will the Ariba/SAP Deal Close? What Customers, Prospects, Competitors and Investors Should Consider (Part 2) [Plus+]

Since the announced transaction, a range of Ariba and SAP competitors have been making aggressive moves to unseat their large rivals, taking a classic software FUD (fear, uncertainty and doubt) approach to clouding prospect and customer impressions of the deal. Some have suggested what we believe to be unsubstantiated claims about a proposed Ariba/SAP combined solution roadmap to create further uncertainty around integration timelines and the benefits of an integrated Ariba/SAP organization (at least for a number of years).

Anti-Network Trust or Anti-Network Bust? Exploring the DOJ Review of SAP’s Proposed Acquisition of Ariba (Part 3) [Plus+]

There is a strong rationale for antitrust enforcement in US history. From railroads to steel, antitrust enforcement has enabled greater competition and business and consumer choice. Yet in the case of Ariba/SAP, there is an argument to be made for the fact that competition is strong and rising in the P2P and network market, and will remain so for the foreseeable future given the caveats we outlined earlier in this series. The only flags we would raise for this potential transaction based on the standards the DOJ and FTC analyze M&A activity based on anti-trust concerns is how Ariba and SAP could potentially lock customers into their own network offering and require (read: mandate) pricing on suppliers because of the lock-in with the procurement and AP community on the buy-side.

Anti-Network Trust or Anti-Network Bust? Exploring the DOJ Review of SAP’s Proposed Acquisition of Ariba (Part 2)

If we take recent Forrester information from their Q1 2011 eProcurement wave as an example (this report is in the public domain thanks to various vendors that have bought the reprint rights to it), the research firm assigned a score of 5.0 (on a scale of 1.0 to 5.0 with 5.0 being the strongest showing) to Oracle for both installed base and market share of new deals. Ariba received a 3.0 and 2.0 respectively while SAP received a 5.0 and 5.0. However, in absolute numbers (e.g., live new customer deployments), we would dispute these numbers based on the fact that many SAP and Oracle deals feature bundled seats across product lines that are not used for many years -- or maybe never used. Moreover, as we’ll explore below, reporting and research accuracy is in question here as well.

Anti-Network Trust or Anti-Network Bust? The DOJ Review of SAP’s Proposed Acquisition of Ariba (Part 1) [Plus+]

Our findings might surprise you. The DOJ could look at the data in several ways, and even if we were in their shoes, based on our knowledge of the market, we would likely let the acquisition pass. But they might opt to challenge it based on how they unwrap the reams of virtual (and actual) paper and data that Ariba and SAP are in the process of submitting as we go to press. But before seeing how we arrived at this conclusion, let’s take a look at some background information on the antitrust evaluation process and this request/case in particular.

How Has the SAP/Ariba Deal Affected Other Firms’ Stock Prices? [Plus+]

It’s been almost two months since the seismic event of the procurement year so far: SAP’s acquisition of Ariba. Whilst many of the questions we raised at the time have yet to be answered, such as the way any product integration might develop or how the two firms’ sales efforts may or may not mesh, we thought it might be an appropriate time to look at the effect on a number of SAP and Ariba’s key competitors.

Taulia: Prospect/Customer Recommendations and Summary Analysis [Plus+]

Based on our analysis of the Taulia product and our cursory (but deep) discussion with one of their larger customers, Spend Matters believes the Taulia solution is one of the most logical discounting solution options for companies with SAP back-end environments (the fewer the number of instances and versions, the better). However, with the recent announcement of SAP’s pending acquisition of Ariba, we would encourage further diligence of Ariba’s discounting solutions and capabilities as well based on current capabilities that will be made available through SAP.

SAP and Ariba: Customer and Prospect Implications – E-Invoicing (Part 2) [Plus+]

This research brief provides a comparison and overview of different e-invoicing elements contained in solutions provided by SAP and Ariba (including invoice/data submission supplier portal, interoperability/integration, network connectivity, etc.). It explores current capabilities of SAP and Ariba (including partner solutions), comparative strengths/weaknesses, operating philosophies (e.g., network centric vs. network/connectivity agnostic) and alternative approaches in the market. This piece will be of particular use to any prospect or customer of Ariba or SAP looking to develop an e-invoicing strategy, pursue a selection process or look to potential solution upgrades. It also provides insight into possible integrated roadmap and solution direction for SAP and Ariba based on an outside perspective.

SAP and Ariba: Customer and Prospect Implications – E-Invoicing (Part 1) [Plus+]

This research brief provides a comparison and overview of different e-invoicing elements contained in solutions provided by SAP and Ariba (including invoice/data submission supplier portal, interoperability/integration, network connectivity, etc.). It explores current capabilities of SAP and Ariba (including partner solutions), comparative strengths/weaknesses, operating philosophies (e.g., network centric vs. network/connectivity agnostic) and alternative approaches in the market. This piece will be of particular use to any prospect or customer of Ariba or SAP looking to develop an e-invoicing strategy, pursue a selection process or look to potential solution upgrades. It also provides insight into possible integrated roadmap and solution direction for SAP and Ariba based on an outside perspective.

Will the Ariba/SAP Deal Close? What Customers, Prospects, Competitors and Investors Should Consider (Part 1) [Plus+]

The supplier network sector focused on P2P enablement, inclusive of e-invoicing connectivity, is currently a tiny market (relatively speaking, but even comparatively compared to broader B2B connectivity and EDI), but one that could grow into a multi-billion dollar domestic market in a number of years. Given the current size of Ariba’s business, despite the fact it represents a majority of basic P2P network-based activity in the US market and that SAP would further drive network volume, Spend Matters believes it is somewhat unlikely (though not entirely impossible) that the deal will be reviewed closely in this area.