Since the announcement of SAP acquiring hybris, I have had companies ask me what this means for the market and for companies like Insite Software. According to nearly every analyst and senior executive I have spoken to, the answer is undeniably the same: it is a huge positive and thumbs up for Insite. Why?
It’s really simple. It starts with the fact that large enterprise organizations generally acquire companies for two reasons: (1) to drive more revenue and (2) to extend their product portfolio. Given the premium that SAP paid for hybris (estimated at $1.3B), this acquisition confirms that:
(1) ERP players do not have sufficient eCommerce technology native in their core applications, they need to buy it.
(2) SAP will focus on selling the hybris solution into its core customer accounts–which is all about large sales and large projects. If you listened or had a chance to read through the comments from SAP about the hybris acquisition, they stated that SAP has 80% of the Fortune 500—and that “beginning day one,” the focus will be to get those customers introduced and into hybris implementations. Just like other SAP, IBM, and Oracle solutions–expect hybris eCommerce implementations to become even longer and more expensive.
At Insite, we believe this is contrary to what leading manufacturers and distributors need to be successful for their eCommerce strategy. These companies need to respond to the demands of their customers immediately through an agile and affordable platform. Companies that build sites on large enterprise platforms give up the ability to respond and iterate their sites on a regular basis to make changes for their customer’s experience. Given the rise of competition with Amazon Supply, Google Shopping for Suppliers, Grainger, and others, the importance of responding quickly with additional products, customer-specific experiences, and increased customer loyalty is paramount. Why wait a year or two to put up a rigid enterprise eCommerce site, only to realize that the strategy that was finalized is now outdated at go-live. Making changes is costly, resource heavy, and usually requires significant development or coding. And given the SAP expanded partner network, there are many relationships and promises that need to be managed.
We also believe that it is important to provide an eCommerce solution that isn’t owned or locked into one ERP provider. Insite’s solutions can integrate with any ERP system giving our customers the flexibility and choices that they need.
At Insite we believe in three core directives:
- We are focused on B2B at the core
- We must deliver superior customer experiences for both our customer and their customers
- Our platform and tools must be agile and affordable.
Please, check us out at www.insitesoft.com or follow us @insitesoft on Twitter to hear more.