Click here to close now.

Welcome!

Cloud Expo Authors: Elizabeth White, Kevin Benedict, Liz McMillan, Pat Romanski, Dan Ristic

Related Topics: Microservices Journal, Java, Linux, Web 2.0, Cloud Expo

Microservices Journal: 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
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Compa...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applicatio...
PubNub on Wednesday released an open source template to allow developers to add Skype-like video chat into their apps. The free template provides a fully functional video chat platform using WebRTC, PubNub and Google Authentication for a global, reliable collaboration solution. “While the WebRTC protocol has created huge excitement as a way to deliver video chat ubiquitously, there’s still a gap between the protocol itself and the ability to deploy a working, globally scaled, collaboration appl...
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
ProfitBricks has launched its new DevOps Central and REST API, along with support for three multi-cloud libraries and a Python SDK. This, combined with its already existing SOAP API and its new RESTful API, moves ProfitBricks into a position to better serve the DevOps community and provide the ability to automate cloud infrastructure in a multi-cloud world. Following this momentum, ProfitBricks has also introduced several libraries that enable developers to use their favorite language to code ...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business applic...
SYS-CON Events announced today that Stratoscale, the new data center operating system, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Based in Herzeliya, Israel, Stratoscale is redefining the data center, developing a hardware-agnostic, software platform hyper-converging compute, storage and networking across the rack or data center. The self-optimizing platform automatically distributes all physical...
of cloud, colocation, managed services and disaster recovery solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. TierPoint, LLC, is a leading national provider of information technology and data center services, including cloud, colocation, disaster recovery and managed IT services, with corporate headquarters in St. Louis, MO. TierPoint was formed through the strategic combination of some of t...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will mee...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
With IoT exploding, massive data will transform businesses with opportunities to monetize almost anything that can be measured. In this C-Level Roundtable Discussion at @ThingsExpo, Brendan O’Brien, Aria Systems Co-founder and Chief Evangelist, will lead an expert panel of consultants, thought leaders and practitioners who will look at these new monetization trends, discuss the implications, and detail lessons learned from their collective experience. Finally, the panel will point the way forw...
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ...