Ariba, FreeMarkets Acquire Services Capabilities
Recent acquisitions by the rival companies prove that there is still a breath of life in supply management software, though perhaps only through diversification.With companies maturing in their own sourcing capabilities and bringing those applications in-house, global supply management software developers find themselves in a quandary: branch out or die out. Recent acquisitions by rivals Ariba Inc. and FreeMarkets Inc. prove that there is still a breath of life in supply management software, though perhaps only through diversification. Ariba announced earlier this week its intent to acquire little-known hosted services provider Alliente Inc., a privately-held procurement business process outsourcing provider. The week previous FreeMarkets announced its intent to acquire the sourcing and services arm of Covisint.
With their respective acquisitions, both Ariba, of Sunnyvale, Calif., and FreeMarkets, of Pittsburgh, are moving in the right direction by providing a hybrid model of delivery that includes a technology platform for automating the supplier sourcing process, expert domain knowledge and supporting services.