Ariba Eyes On Demand Procurement Model
Ariba has emerged from the bad old days of the dot-com crash to become the market leader at the "spend management" end of the supply chain. Now, after merging with FreeMarkets, the vendor is in internal integration mode.Nearly nine months after merging with FreeMarkets, Ariba Inc. is now developing a more integrated procurement lineup, with the ultimate goal of giving users an on demand model for "spend management" software and services. In a presentation at Lehman Brothers 2005 Global Software, IT Services and Internet Conference, Ariba Chief Financial Officer Jim Frankola likened the companys expansion into spend management from its early e-procurement roots to PeopleSoft Inc.s movement into ERP (enterprise resource planning) from its human resources software beginnings. SAP AG, another ERP leader, "started out with general ledger," he told the audience. But unlike many other enterprise IT vendors, which sell to CEOs, Aribas pitch is to CFOs, according to the Ariba CFO.
Aribas decision to broaden its portfolio of products and services was driven by the "dot-com crash" earlier in this decade, he said. In talking with procurement users at that time, Ariba heard over and over again that "e-procurement is not enough."