Hubwoo and Crossgate get it together in SAP procurement love-in

Hubwoo have announced that they have entered into a 'strategic global alliance'  with Crossgate - they have "combined their B2B networks so that enterprises can gain access to hundreds of thousands of active trading partners globally through a single connection"

Both of the firms have a strong SAP links (including equity investment) and this agreement has obviously been made with the full backing and presumably encouragement of SAP. Jason Busch at SpendMatters US puts it in his usual inimitable way;

The SAP procurement marriage yenta is watching out for the best interests of its clan -- and in so doing, its own best interest. Yesterday, it arranged a dating partnership between two of its charges, Hubwoo and Crossgate. Of course, given SAP's investment in both, this is more of a royal European-style introduction of old, involving two relatives in the portfolio -- but like the Hapsburg, at least we know what the children will look like. And like good Hessian military prodigies, they'll be programmed with a singular goal for the parent -- take on the Ariba Supplier Network and give SAP a fighting chance at disrupting the status network quo.

The intention appears to be too create a serious competitor to the Ariba network, and they have that very much in their sights; more from Jason.

Hubwoo shared with Spend Matters that the cost of the network is modeled to be "less expensive than Ariba" with fees starting at .125% of spend for suppliers and an "SAP/Hubwoo offer for free supplier enablement of current suppliers for buyers who switch from ASN to SAP."

Do read Jason's full piece if you're interested; and we'll unashamedly piggy-back on his forthcoming analysis on how the new service compares to Ariba, and how the partnership is going to work in practice for clients.

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