Emptoris automates the increasingly complex buying, bidding and accounting process for enterprise procurement teams and does it with a global perspective.
IBM on Dec. 15 added another
new element to its enterprise cloud service menu when it acquired supply chain
procurement software provider Emptoris
. Terms of the deal were not released.
Emptoris, based in
Burlington, Mass., automates the increasingly complex buying, bidding and
accounting process for enterprise procurement teams and does it with a global
perspective. This includes variances in languages, currency and other cultural
IBM has been on a buying
binge lately in the cloud-service sector. Earlier this month, the IT giant
annexed San Mateo, Calif.-based DemandTec
, which helps retailers set optimal
pricing for their products, and Ireland-based Curam Software
, which enables
welfare and unemployment agencies to manage the programs they administer.
Big Blue is augmenting its
cloud services options in order to expand its Smarter Cities initiative to
increase efficiencies in local and state government IT systems.
Twelve-year-old Emptoris has
about 350 customers globally from industries that include retail, financial
services and health care. It employs about 725 people globally.
'Complex' May Be Understatement
The term "complex"
is probably an understatement when it comes to the administration of high-end
enterprise procurement procedures.
"Companies might run as
many as 10,000 to 20,000 auction or purchasing events, in which they put in all
their RFQs [requests for quotes] and RFIs [requests for information] out onto
the Web," President and CEO Patrick Quirk told eWEEK
. "They have their suppliers around the world answer
those RFPs [requests for proposals] and provide pricing information.
"These can be very
complicated; sometimes they may have 10,000 line items-including legal,
contract, business terms, you name it. We supply optimizers to help determine
the best suppliers to buy from, how to spread your risk, how to buy from
multiple countries, then award those bids and track them digitally in
Emptoris is a way to buy
globally but act locally when procuring items, Quirk said. "For most
companies, that's 50 percent of their cost, for their supply base," Quirk
said. "So managing that supply base is extremely important."
IBM said the acquisition is
expected to close in Q1 2012.