Welcome!

@CloudExpo Authors: Yeshim Deniz, Pat Romanski, Elizabeth White, Liz McMillan, Aruna Ravichandran

Related Topics: Microservices Expo, Java IoT, Linux Containers, Agile Computing, @CloudExpo

Microservices Expo: Article

Getting a Handle on Spot Buying

SAP’s Ariba teams with eBay to improve rogue B2B procurement for buyers, sellers and enterprises

It remains one of the last bastions of enterprise spend over which companies have little or no control. Yet companies have been loathe to tamper with how their employers and managers buy ad-hoc goods - known as indirect spend, shadow purchasing, or "spot buying."

Now, SAP's Ariba cloud is bringing the best of flexible, innovative spot-buying practices into a more controlled and sanctioned process by teaming with eBay and its B2B marketplace for an integrated, yet dynamic, approach to those indirect purchases not covered by contracts and formal invoicing.

Such scattered, and often unmonitored, spot buying amounts to 15 to 20 percent of a typical enterprise's total purchasing. And so it provides a huge opportunity for improvement, the type that cloud, big-data analytics, and a marketplace of marketplaces approach can best solve. [Disclosure: Ariba is a sponsor of BriefingsDirect podcasts.]

The Ariba Networks Spot Buy service was announced today in Orlando at Sapphire by SAP CEO Bill McDermott. "The most intractable CEO issue of our time is complexity," McDermott said in a keynote address Tuesday. "It's getting worse and worse. We see a dream for a simpler SAP, and a simpler customer experience."

Long before the Web, the Thomas Register or vertical industry buyers' catalogs were the mainstays for how many business goods were discovered and procured. There were often done with no contracts, no bids, and no invoices. A material or product was needed, and so it was bought and paid for - fast.

The Web -- and especially Internet search - only increased the ability for those workers in need to find and buy whatever they had to to get their jobs done. Because these buys were deemed "emergency" purchases, or amounted to smaller total amounts, the rogue process essentially flew under the corporate radar.

Under the new Ariba Networks Spot Buy service, major and public online marketplaces are brought into the procurement process inside of SAP and Ariba applications and services. eBay is the first, but Ariba expects to extend the process efficiency to other online B2B markets, said Joe Fox, Vice President of Business Network Strategy at SAP.

Pilot program

The new indirect procurement approach, which will operate as a pilot program between August and December this year, before general availability, will allow those buying through the integrated Ariba Network's Spot Buy services to use eBay's PayPal service to transfer and manage funding, said Fox.

Consistently updated content about B2B goods (services support will come later) will be available to users inside of their existing procurement applications, including Ariba, SAP and later third-party enterprise resource planning (ERP) applications, explained Fox. The users can search inside their Ariba apps, including soon-to-be-delivered mobile versions, alongside of their traditional purchasing app services, he said.

"It's consumerizing business," said Fox, adding that users gain convenience and access inside of procurement apps and processes while enjoying ad hoc flexibility and one-click, no-invoice payments from converged markets, catalogs and sanctioned search. Enterprises, on the other hand, gain a new ability to monitor spot buying, analyze it, and provide guidance and curation of what goods should be available to buy - and on what general terms. "It's the best of Web-based buying but with some corporate control," said Fox.

We are facilitating access - with controls and filters - to all the public and third-party content from various markets. It's basically unlimited appropriate content for buyers and seekers.

Eventually, as multiple marketplaces become seamlessly available to procurement apps users, deeper analysis - via SAP's HANA big-data infrastructure on which all Ariba apps and cloud services are being deployed - will allow business to determine if redundancy or waste indicates that the sourcing should be done differently.

The net net, said Fox, is that more unmonitored spending can fall under spot buying, even as some spot buying can move to more formal procurement where bids, negotiation and payment efficiencies such as dynamic discounting can play a role. What's more, analytics can be applied to a whole new area of spend, amounting to higher productivity over many billions of dollars of B2B spending per year worldwide.

"We are not going to build any marketplaces," said Fox. "We are facilitating access - with controls and filters - to all the public and third-party content from various markets. It's basically unlimited appropriate content for buyers and seekers."

These marketplaces will also allow those selling goods and products to gain improved access into the B2B environments (such as the SAP installed base globally) as a new way to go seller-direct with information and content about their wares. New business models and relationships are no doubt bound to develop around that.

Fox said no other business app or procurement services providers have anything like the new offering, one that targets rogue and unmonitored buying by workers using open and aggregated mainstream markets for B2B goods.

You may also be interested in:

More Stories By Dana Gardner

At Interarbor Solutions, we create the analysis and in-depth podcasts on enterprise software and cloud trends that help fuel the social media revolution. As a veteran IT analyst, Dana Gardner moderates discussions and interviews get to the meat of the hottest technology topics. We define and forecast the business productivity effects of enterprise infrastructure, SOA and cloud advances. Our social media vehicles become conversational platforms, powerfully distributed via the BriefingsDirect Network of online media partners like ZDNet and IT-Director.com. As founder and principal analyst at Interarbor Solutions, Dana Gardner created BriefingsDirect to give online readers and listeners in-depth and direct access to the brightest thought leaders on IT. Our twice-monthly BriefingsDirect Analyst Insights Edition podcasts examine the latest IT news with a panel of analysts and guests. Our sponsored discussions provide a unique, deep-dive focus on specific industry problems and the latest solutions. This podcast equivalent of an analyst briefing session -- made available as a podcast/transcript/blog to any interested viewer and search engine seeker -- breaks the mold on closed knowledge. These informational podcasts jump-start conversational evangelism, drive traffic to lead generation campaigns, and produce strong SEO returns. Interarbor Solutions provides fresh and creative thinking on IT, SOA, cloud and social media strategies based on the power of thoughtful content, made freely and easily available to proactive seekers of insights and information. As a result, marketers and branding professionals can communicate inexpensively with self-qualifiying readers/listeners in discreet market segments. BriefingsDirect podcasts hosted by Dana Gardner: Full turnkey planning, moderatiing, producing, hosting, and distribution via blogs and IT media partners of essential IT knowledge and understanding.

@CloudExpo Stories
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.