SAP Buys Supplier-Software Vendor - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


SAP Buys Supplier-Software Vendor

Frictionless' package helps large and midsized corporations cut costs by managing and selecting their suppliers more efficiently.

SAP AG said Wednesday it will acquire Frictionless Commerce for an undisclosed cash amount to expand its product portfolio of supplier relationship management (SRM) software. The deal should close in July, the German enterprise software maker said.

Frictionless Commerce helps large and mid-size corporations cut costs by managing and selecting their suppliers more efficiently. The move rings consistent with SAP's strategy to buy small companies that offer services required to fill-in holes in its offerings.

As globalization increases cost pressures, companies need to take a better approach to managing suppliers. The acquisition combines Frictionless' electronic sourcing capabilities SAP's applications, including mySAP Supplier Relationship Management, the company said.

Frictionless Commerce's On-Demand edition offers e-Sourcing capabilities available through a Web browser, allowing companies to begin sourcing projects and managing suppliers within days rather than months.

With more than 70 employees and an estimated $10 million to $12M in revenue, Frictionless will move its on-demand platform to an integrated SAP environment, according to AMR Research Inc.

The research firm said SAP made the announcement at the company's Sapphire customer conference in Orlando, Fla., where SAP chief executive officer Henning Kagermann highlighted the company's strategy for NetWeaver, the foundation for SAP's products. To encourage use of NetWeaver, SAP also set up a $125 million venture fund to persuade other software vendors to build on the NetWeaver platform.

Headquartered in Cambridge, Mass., the company's customers include Bristol-Myers Squibb, CIGNA, MetLife, Revlon and Wachovia.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
The State of Chatbots: Pandemic Edition
Jessica Davis, Senior Editor, Enterprise Apps,  9/10/2020
Deloitte on Cloud, the Edge, and Enterprise Expectations
Joao-Pierre S. Ruth, Senior Writer,  9/14/2020
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Register for InformationWeek Newsletters
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll