Also, I've noticed quite a few large companies (e.g. Colgate, Nokia, etc) have rid themselves of Ariba and changed over to SAP SRM. What are the reasons?
A number of companies including the ones you mention are moving towards SAP as their core enterprise solution is SAP. In the early 2000's many companies strived towards the best of breed e-solutions for SRM and CRM. SAP took some time to catch-up and customers choose Ariba over SAP. But now, the SAP SRM solution is a leader in the market with its superior functionality, user-interface and core integration to the enterprise backend. I believe that's how SAP is able to provide a Total Lower Cost of ownership, by reducing the amount of throwaway customization, core integration into its Financials, HR, Supply Chain and Technology platform that other products in the market are unable to easily provide. So if you are a customer that has the SAP R/3 or ERP enterprise solution and need a solid supplier relationship management solution offering, the SAP SRM solution provides a very good option over competitors and provides a technology landscape that should be in-line with the enterprise needs.
I'll have to say that looking at over 10 companies that debated over SAP SRM and Ariba or other solutions, the #1 reason why they chose SAP SRM was due to its core and strong integration with the SAP R/3 or ERP backend.
This was first published in September 2007