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WIKI ANALYSIS
Ariba (NASDAQ: ARBA) is a provider of software, services, and network solutions that help customers to control costs, minimize risk, improve profits, and enhance cash flow and operations. Ariba's revenues are separated between subscriptions & maintenance and services; while the majority of its revenues are from North America, Ariba serves customers from offices in over 20 countries worldwide. Demand for Ariba's products and services has increased as a result of the economic downturn and Ariba as driven its own innovation through collaboration with partner technology firms.
Business Growth
The major source of growth over the past year was a focus on building sourcing and procurement services segments while divesting the business process outsourcing segment. This focus on the core businesses has fueled strong growth in subscription software revenue, up 60% over the past year. The company also saw strong growth in network revenue which tripled from 2009 to 2010.
Trends and Forces
Economic Downturn Has Increased Demand For Technology-Enabled Efficiency Software
Demand for Ariba's software, services and network solutions has increased as a result of the economic downturn. Since Ariba provides solutions that allow customers to control costs and improve operational efficiencies, companies looking to reduce their expenses have become more receptive to implementing such technology in their businesses.
Collaboration Among Technology Firms Boosts Ariba's Innovation
As the global economy becomes increasingly connected, the software industry has seen more consolidation and firms have become more receptive to establishing partnerships. Ariba has caught onto this trend by strategically partnering with several firms. For example, Ariba has recently partnered with Logica in order to offer software that simplifies the compliance process with European Union regulatory requirements. Other strategic partnerships include D&B and Cloud Strategic Services.
Competition
Ariba competes with companies that offer business commerce solutions that use the internet to provide firms with real-time access to their business data and their business partners.
- Oracle (ORCL) Oracle is an enterprise software company that provides software for managing business data, supporting business operations, and facilitating collaboration and application development. Oracle's business segments include consulting, on demand, and education. Ariba competes directly with Oracle in the on demand software segment.[1]
- SuccessFactors Inc (SFSF) Sucessfactors is an enterprise software company that provides Software as a Service platforms that automate goal planning, progress tracking, and performance reviews.[2]
- International Business Machines (IBM) IBM is an information technology company that offers computer hardware as well as business services and software units. Its business segments include Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology, and Global Financing.[3]
References
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