Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Development
    • Development

    Agile Move?

    By
    eWEEK EDITORS
    -
    February 5, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Debate has already started about the first big business-to-business merger of 2001, the $2.5 million combination of Ariba and Agile Software.

      UBS Warburg downgraded Ariba for giving up 23 percent of its own slumping stock in exchange for Agile. The investment house worries that the e-procurement software vendor paid a high price and may stumble while trying to integrate Agiles software with its own.

      Lehman Brothers Holdings and Dresdner Kleinwort Wasserstein upgraded the stock, saying the acquisition moves Ariba into markets it needed to enter, particularly for “direct materials” used in any manufacturing process.

      Ariba clearly has bigger things in mind. The company wants Agiles software in order to enter the “collaboration” market, said to be the next big thing in business-to-business commerce.

      “Theyre not blowing smoke,” said Richard Davis, an analyst at Needham & Co. “Its using the primary strength of the Internet — real-time communications between trading partners” to solve problems and lay plans in engineering, contracting, logistics, production, marketing and more, he said.

      Ariba officials played up the collaboration angle, saying it expands Aribas “addressable market by two to three times.”

      “The market is looking for a leader. Our merger with Agile, the uncontested leader in collaboration, gives us a decisive claim,” said Larry Mueller, Aribas president and chief operating officer.

      Despite the bold claim, the space is already contested, analysts said. “Commerce One and SAP are working together. Oracle just announced a suite of collaboration software. I2 [Technologies] would say theyre the leader, but each has a different approach,” said Jeanette Sing, vice president at Dresdner Kleinwort Wasserstein.

      Agile, which makes software that lets manufacturers share documents and data for designing products, dominates in electronics manufacturing, but the collaboration market is bigger than that, she said.

      The deal also expands the competition by opening another crack in Aribas “alliance” with i2, a supply chain software vendor that has been encroaching on the e-procurement market. While Ariba officials stressed that Agiles software doesnt compete with i2s, it was clear that Ariba is heading into markets where it will likely meet its erstwhile ally on far less friendly terms. “This is just another shot across the bow,” said Friedman Billings Ramsey analyst David Hilal. “As each expanded its own portfolio, they move farther apart.”

      Analysts also expect Ariba to pursue other acquisitions this year, possibly including supply chain vendors SynQuest or Adexa.

      Ariba wants to close at least one gap — its stock value, which fell 30 percent in January to about $38.50 per share.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×