Yesterday, Ariba announced the completion of it’s acquisition of Procuri, Inc. According to Bob Calderoni, CEO of Ariba:
“The acquisition of Procuri is a very positive step for Ariba that builds upon our successful on-demand strategy. On-demand is the fastest growing segment in the spend management market, and Ariba is the clear leader with its share of more than 40 percent. By working to integrate Procuri’s offerings into our already robust portfolio of solutions in the months ahead, we can further extend our leadership and deliver on our promise to make spend management available and affordable to all companies. Procuri had great success selling to both the enterprise and the mid-market, accumulating over 300 customers with nearly 70 percent of them under $5 billion in revenue. Software-as-a-service is something they did from day one, and with that comes a lot of know-how about how to successfully go to market with these types of solutions. Clearly this is something we can leverage at Ariba to fuel continued growth of both our revenue and market share.”
Transforming from a licensed based software to a transaction based model has not been easy for Ariba. Companies such as HSBC will remain on licensed based models, as they have spent significant capital expenditure in large self-hosting solutions. However, the future lies with SaaS, as it makes sound commercial sense, as security and reliability issues are becoming thing in the past. Acquisition of Procuri no doubt will give further confidence to Ariba in terms of delivering on-demand products and services.
Jason Busch, perhaps the only Ariba sponsored non-employee blogger has posted a great blog article on Ariba and Procuri, having spoken to Alex Moissis, Ariba’s new VP of Solutions Marketing and Tim Minahan, fellow blogger and Ariba’s new Chief Marketing Officer. Visit Jason’s blog for the full article here. According to Jason:
- Kent Parker has been elevated to the role of Chief Operating Officer
- Only 3% customer overlap between the two organisations creating a significant up-sell and cross-sell opportunities.
2008 no doubt will be an interesting year for Spend Management and Ariba’s push into EIPP (e-invoicing) in EMEA.