Ariba
Encyclopedia
Ariba is a software and information technology services company located in Sunnyvale
, California
.
process. Procurement had been a paper-based, labor-intensive, and inefficient process for large corporations. According to the company's website, Ariba provides "Spend Management solutions" which help companies "analyze, understand, and manage their corporate spending to achieve cost savings and business process
efficiency." Currently, 94 of the Fortune 100 and more than 200,000 other companies use Ariba's SaaS (Software as a Service) solutions to manage their spend and commerce activities.
Ariba was one of the first business-to-business
Internet companies to go public (in 1999). The company's stock more than tripled from the offering price on opening day, making the three year-old company worth $6 billion. In 2000, the stock value continued to climb, and Ariba's market capitalization
was as high as $40 billion. With the bursting of the dot-com bubble
, Ariba's stock price fell dramatically to the low double digits in July 2001, where it has remained since, with a market capitalization of just over $1.5 billion as of June 2010.
in a stock swap valued then at $1.87 billion. TRADEX was the leader in the nascent Digital Marketplace Software field. The stock market liked the acquisition and the price of Ariba's shares rose from $57 at the time of the announcement to $173 at closing on March 9, 2000, which also marked the peak of the Internet Bubble. The 33.2 million shares that Ariba issued to buy TRADEX were then worth $5.6 billion to TRADEX shareholders.
In January 2001 Ariba announced that it would acquire Agile Software in a $2.55 billion stock swap. By April, with Ariba facing a disappointing second quarter and cutting a third of its workforce, the deal had fallen apart.
In early 2004, Ariba acquired FreeMarkets which gave the company a software package both in the upstream (sourcing) and downstream (buyer) of the procurement process. In late 2007, Ariba took over the company Procuri, which enhanced the company's client base and on-demand abilities.
Ariba's competitors include PROACTIS, SAP
, Bravosolution
, Oracle
, Global eProcure
, Zycus, Rosslyn Analytics, Ivalua, and Emptoris
.
In December 2008, Ariba announced that the U.S. District Court for the Eastern District of Texas
had issued an injunction against Emptoris
, which prohibits the company from infringing on two of Ariba's patents related to overtime and bid ceilings in reverse auctions. On 16 December 2008, the court ordered Emptoris
to pay an enhanced damages award of $1.4 million for willful infringement in connection with Emptoris
’ infringement of the two reverse auction-patents held by Ariba. This was in addition to the 29 October 2008 jury award of $5 million in damages to Ariba, bringing the total fine to approximately $6.4 million, a significant penalty for Emptoris
which earned approximately $50 million in revenue for 2008. In an Emptoris
press release, that company noted that it had released a new software "patch" that eliminates any infringement. The U.S. District Court, in February 2009, issued an order noting that the "patch" is colorably different, effectively concluding the case.
In November, 2010, Ariba announced that it would acquire Quadrem, a privately-held provider of one of the world's largest supply networks and on-demand supply management solutions. The acquisition closed in January 2011.
In October, 2011 Ariba announced the acquisition of b-process a privately-held French company and european leader in electronic invoicing service provider for approximately €35 million in cash.
automatically from base Java
or Groovy classes and includes Object-Relational Mapping
features. It also encapsulates AJAX
functionality and has a broad selection of UI widgets.
Sunnyvale, California
Sunnyvale is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley located in the San Francisco Bay Area...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
Early life
Ariba was founded in 1996 by Bobby Lent, Boris Putanec, Paul Touw, Rob Desantis, Ed Kinsey, Paul Hegarty, and Keith Krach on the idea of using the Internet to enable companies to facilitate and improve the procurementProcurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
process. Procurement had been a paper-based, labor-intensive, and inefficient process for large corporations. According to the company's website, Ariba provides "Spend Management solutions" which help companies "analyze, understand, and manage their corporate spending to achieve cost savings and business process
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
efficiency." Currently, 94 of the Fortune 100 and more than 200,000 other companies use Ariba's SaaS (Software as a Service) solutions to manage their spend and commerce activities.
Ariba was one of the first business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
Internet companies to go public (in 1999). The company's stock more than tripled from the offering price on opening day, making the three year-old company worth $6 billion. In 2000, the stock value continued to climb, and Ariba's market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
was as high as $40 billion. With the bursting of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
, Ariba's stock price fell dramatically to the low double digits in July 2001, where it has remained since, with a market capitalization of just over $1.5 billion as of June 2010.
Past acquisitions and competitors
On December 17, 1999 Ariba announced it would acquire Atlanta based TRADEX Technologies Inc.Tradex Technologies
TRADEX Technologies Inc. was a venture-backed company that became a leading provider of B2B marketplace e-commerce exchange solutions in 1999. Entirely Java-based, its product TRADEX Commerce Center was an out-of-the-box software and enabled the streamlining of processes like real-time online...
in a stock swap valued then at $1.87 billion. TRADEX was the leader in the nascent Digital Marketplace Software field. The stock market liked the acquisition and the price of Ariba's shares rose from $57 at the time of the announcement to $173 at closing on March 9, 2000, which also marked the peak of the Internet Bubble. The 33.2 million shares that Ariba issued to buy TRADEX were then worth $5.6 billion to TRADEX shareholders.
In January 2001 Ariba announced that it would acquire Agile Software in a $2.55 billion stock swap. By April, with Ariba facing a disappointing second quarter and cutting a third of its workforce, the deal had fallen apart.
In early 2004, Ariba acquired FreeMarkets which gave the company a software package both in the upstream (sourcing) and downstream (buyer) of the procurement process. In late 2007, Ariba took over the company Procuri, which enhanced the company's client base and on-demand abilities.
Ariba's competitors include PROACTIS, SAP
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...
, Bravosolution
Bravosolution
BravoSolution is a supply management software and professional services provider.- Early life :BravoSolution was founded in 2000 in Milan, Italy by a multinational group of investors...
, Oracle
Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...
, Global eProcure
Global eProcure
GEP is a procurement services company offering consulting, technology, and procurement outsourcing. It was founded in 1999 by Dr. Subhash Makhija with a few others and is headquartered in Clark, New Jersey....
, Zycus, Rosslyn Analytics, Ivalua, and Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
.
In December 2008, Ariba announced that the U.S. District Court for the Eastern District of Texas
United States District Court for the Eastern District of Texas
The United States District Court for the Eastern District of Texas is the Federal district court with jurisdiction over the eastern part of Texas and is a part of the Fifth Circuit. The court's headquarters are in Tyler, Texas and has five subdivision offices in Beaumont, Lufkin, Marshall,...
had issued an injunction against Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
, which prohibits the company from infringing on two of Ariba's patents related to overtime and bid ceilings in reverse auctions. On 16 December 2008, the court ordered Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
to pay an enhanced damages award of $1.4 million for willful infringement in connection with Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
’ infringement of the two reverse auction-patents held by Ariba. This was in addition to the 29 October 2008 jury award of $5 million in damages to Ariba, bringing the total fine to approximately $6.4 million, a significant penalty for Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
which earned approximately $50 million in revenue for 2008. In an Emptoris
Emptoris
Emptoris, Inc. is a developer and provider of strategic supply and contract management software solutions including solutions for spend analysis, sourcing, contract management, supplier lifecycle management, services procurement, compliance management and telecom expense management...
press release, that company noted that it had released a new software "patch" that eliminates any infringement. The U.S. District Court, in February 2009, issued an order noting that the "patch" is colorably different, effectively concluding the case.
In November, 2010, Ariba announced that it would acquire Quadrem, a privately-held provider of one of the world's largest supply networks and on-demand supply management solutions. The acquisition closed in January 2011.
In October, 2011 Ariba announced the acquisition of b-process a privately-held French company and european leader in electronic invoicing service provider for approximately €35 million in cash.
AribaWeb
On February 19, 2009 Ariba announced AribaWeb, an open source framework for Rich Internet Applications. It is designed to generate a user interfaceUser interface
The user interface, in the industrial design field of human–machine interaction, is the space where interaction between humans and machines occurs. The goal of interaction between a human and a machine at the user interface is effective operation and control of the machine, and feedback from the...
automatically from base Java
Java (programming language)
Java is a programming language originally developed by James Gosling at Sun Microsystems and released in 1995 as a core component of Sun Microsystems' Java platform. The language derives much of its syntax from C and C++ but has a simpler object model and fewer low-level facilities...
or Groovy classes and includes Object-Relational Mapping
Object-relational mapping
Object-relational mapping in computer software is a programming technique for converting data between incompatible type systems in object-oriented programming languages. This creates, in effect, a "virtual object database" that can be used from within the programming language...
features. It also encapsulates AJAX
Ajax
- Mythology :* Ajax , son of Telamon, ruler of Salamis and a hero in the Trojan War, also known as "Ajax the Great"* Ajax the Lesser, son of Oileus, ruler of Locris and the leader of the Locrian contingent during the Trojan War.- People :...
functionality and has a broad selection of UI widgets.