IBM to retire Emptoris and work with SAP Ariba on next generation digital procurement

Duncan Jones

SAP Ariba & IBM today announced a partnership that had been a rumour for a few days now. Part of the deal includes IBM gradually retiring Emptoris and encouraging its customers to migrate to SAP Ariba.

http://www.ariba.com/about/press-releases/sap-ariba-and-ibm-transform-procurement

It’s an ambitious move by SAP Ariba. IBM Emptoris’s leadership had an exciting vision of next gen digital procurement but decided they couldn’t deliver it without a cost prohibitive replatforming of its various products. SAP Ariba has a good suite of products and a captive market, but now its leaders have shown that they also have a vision for digital procurement. The partnership makes sense for both companies.

·         IBM can now convert its digital procurement vision into revenue streams. By linking up with SAP Ariba it will be able to create a royalty stream for IBM Watson and implementation work for IBM GBS. Gracefully retiring Emptoris is a pragmatic decision and avoids wasting money trying to shore up a revenue stream that was doomed to decline anyway.

·         SAP Ariba will benefit from IBM’s vision, technology, and influence. It will get some new ideas about the opportunities for digital procurement. IBM GBS’s procurement transformation practice will become a source of leads for SAP Ariba. IBM’s own procurement department may be a proving ground for its innovation, (assuming that it eventually migrates from Emptoris to the Watson-enhanced SAP Ariba platform).

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