SciQuest NextLevel: Dispatch 3 (AECsoft Integration Planning and Product Roadmap — Part 2)

In the first post in this series, I shared my early interview notes from my discussions with SciQuest's Gamble Heffernan regarding their current activities around integrating AECsoft products. I'll continue this discussion today, starting first by featuring Gamble's response to a question I had surrounding SciQuest's strategy for handling potential data migrations given AECsoft's multiple deployment models (e.g., installed, installed and customized code, hosted, and SaaS). This is an important question, because SciQuest is a true SaaS/cloud vendor without apologies that shows very limited flexibility in how a customer opts to deploy their software. SaaS or nothing, buddy.

In this regard, Gamble suggested that they are in the process of trying to move the AECsoft model exclusively to a SaaS, subscription-based model. She acknowledged that a few AECsoft customers had bought perpetual licenses, and while this is not a model SciQuest is supporting today from a new sales/request perspective, they will continue to honor the contractual obligations of past AECsoft customers. Moreover, some AECsoft customers have the current right to buy perpetual agreements, and they will honor these commitments as well.

Yet above all, if you're contracting with SciQuest for AECsoft capabilities and products going forward, it will be in a subscription-based/SaaS manner. No on- premise option will remain. And in terms of backward compatibility for AECsoft products given the multiple standard and customized versions circulating in the market (for both sourcing and supplier management), SciQuest plans to release further granularity around its plans and integration roadmap in the next six months. This may include, for example, compatibility specific to integrating historical data around sourcing events with other content. But at this point, she did not provide specifics.

Going forward, Gamble also noted that all SciQuest deals will be based on their own paper and terms rather the somewhat flexible approach AECsoft was previously known for with clients. However, existing AECsoft customers can continue using the product until renewal without inking deals on new paper. Spend Matters is aware, however, of a number of AECsoft relations which were done on incomplete paper or with a handshake and it is not entirely clear the stage SciQuest is with transitioning these relationships over to formal, SciQuest paper.

Stay tuned for the final post in this series when we look at changes in pricing and related areas as SciQuest takes over and puts greater formality around the AECsoft business.

- Jason Busch