SAP, which expects the deal to close in the third quarter pending shareholder and regulatory approvals, said it will operate Ariba as a separate division and will continue to support connectivity to applications from competitors such as Microsoft, NetSuite and Oracle. "We have a unique opportunity to significantly expand this business," he said. Yet that $319 billion transacted by Ariba is only a small fraction of the opportunity, McDermott said, estimating that the top 2,000 businesses spend $12 trillion per year from their suppliers. "The acquisition of Ariba will also advance us significantly toward realizing 2 billion in cloud revenues in 2015." "This is a game-changing opportunity for SAP that complements and accelerates our existing on-premises core business software as well as our cloud offerings," said SAP Co-CEO Bill McDermott during an investor conference call held Tuesday to announce the deal. Walt Disney, for example, conducts more than 900,000 transactions per year with over 7,000 suppliers. Executives at both companies pointed to customers who use Ariba's SRM network such as Deutsche Bank, ExxonMobil and Walt Disney. SAP said 190,000 companies use its ERP and CRM software. Ariba claims its trading network automates more than $319 billion in transactions and provides intelligence on over 730,000 companies. SRM networks helped level the playing field and reshape the economics of supply chain management once defined by costly legacy electronic data interchange (EDI) networks.Īriba's global trading network has 5 million paying subscribers among 60,000 customers and grossed $444 million in its 2011 fiscal year, up 50 percent over 2010. Ariba gained fame in the late 1990s with its supplier relationship management (SRM) platform, which matches those procuring goods with sellers. The company last week used its annual Sapphire conference in Orlando to talk up some new SaaS initiatives, including new pairings from its recent $3.4 billion acquisition of human capital management provider SuccessFactors, a pact with Amazon Web Services to support SAP's Business All-In-One and Business Objects software on the EC2 cloud service, and plans to offer SAP's Sybase Afaria mobile device management platform on the AWS Marketplace.īut the big news came Tuesday when SAP said it is shelling out $4.3 billion to acquire Ariba, which operates the giant B-to-B cloud-based supply chain management network. Software giant SAP doesn't get much recognition when it comes to the topic of cloud computing, but it's not for lack of trying. SAP Boosts Cloud Shift with Deal To Acquire Ariba
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