Business & Technology Nexus

Dave Stephens on technology and business trends

SAP SRM finally has Sourcing & Contracts

with 2 comments

Congratulations to SAP on the Frictionless deal!

SAP didn't break out revenues by product line this past quarter. But the 4Q prior SAP SRM was up a very nice 19% to 175MM Euros or 225MM USD. Amazingly, this was without a credible Sourcing or Contract Management offering.

Now that's changed – with the Frictionless acquisition you can bet SAP's army of direct sales reps will be gunning for upsell revenue on their SRM and Financials install base.

Jason, even while ill, provides thoughtful analysis of the deal and its impact here.

Time will tell how much mo' this acquisition adds to SAP's already growing SRM business. From a development perspective, it will be interesting to learn whether SAP plans a re-write (over time & quietly of course) -or- plans to keep Frictionless a loosely-coupled, NetWeaver certified integration for the forseeable future.

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Written by Dave Stephens

05/17/06 10:02 AM at 10:02 am

Posted in Opinion

2 Responses

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  1. SAPPHIRE 2006: New On-Demand SRM Offering through Acquisition of Frictionless Commerce

    Quick news from SAP’s Press Conference: Shai Agassi has just announced the all-cash acquistion of Frictionless Commerce, a leading Supplier Relationship Management (SRM) software provider.  As a result of the acquistion, On-Demand SRM will be the sec…

    Zoli's Blog

    05/17/06 1:00 PM at 1:00 pm

  2. […] The acquisition of Frictionless doubles the number of applications that SAP now offers on-demand from one (CRM) to two (adding supplier relationship management — SRM). But that wasn’t SAP’s motive, which Procurement Central blogger Dave Stephens nailed in a short posting last week: SAP SRM finally has Sourcing & Contracts. The point of the deal is to add vital missing functionality to SAP’s SRM offering. Further analysis posted by spend management blogger Jason Busch and AMR analyst Mickey North Rizza reveals that: […]


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