Concur, SAP and Mid-market Customers

The SAP purchase of Concur makes a great deal of sense for SAP. Focused on the enterprise market and in need of cloud solutions, SAP had purchased a few other Cloud ERP solutions, including Ariba and Fieldglass. With Concur, SAP will now have an enterprise-level travel and expense solution to sell to the majority of its 261,000 customers that do not use Concur today. SAP now has three or four Cloud silos that will need a lot of resources and time to cobble together as an Enterprise suite—a distraction at best, in a competitive Cloud landscape.

Concur has recently focused on travel booking tools for enterprise clients as well as integrations with these services. Concur CEO Steve Singh said that the SAP purchase will allow Concur to expand the company’s travel booking software to many more markets, as it is only available in about 10 countries today. Concur's challenges are: supporting the 15 year U.S. government contract that they won a year ago; trying to scale their solution to meet additional enterprise opportunities from SAP; and trying to develop a logical mobile strategy. Concur will also benefit from a tax inversion by being owned by a non-US based company. While the Cloud is an attractive alternative to on premise software, no company wants to be handed a Cloud platform with siloed Cloud applications in terms of their user management, workflow engine and policy management. SAP and Concur will have to focus their energies on solving these issues.

The union of Concur with SAP most likely makes a lot of sense for both companies and the enterprise market. But, what does this mean for mid-market customers and Ariett Purchase and Expense Software?

As mid-market customers pause to think about their future Concur service level and price points, there is significant opportunity for Ariett. Ariett delivers more value with the release of its mobile first expense reporting solution designed for the corporate mid-market. Ariett Travel and Expense provides both ease-of-use—similar to consumer mobile solutions—and robust business rules for upper tier mid-market companies. Ariett will also release a mobile first corporate travel approval solution in October along with our purchase-to-pay solution on a unified platform.

Mid-market software solutions must address the dual mandate of price and performance, which makes it difficult for enterprise providers to meet the expectations of mid-market companies. The complexity of their Cloud architected multi-tenant solution is designed to support clients with thousands and thousands of users with complex reporting requirements (chargeable) and is not designed to easily deliver a set of real-time meaningful features for upper mid-market customers. Since mid-market customers are trying to control costs with automated business solutions, they should not have to pay for enterprise capacity that is unnecessary. Midmarket customers expect a suite of products built from the ground up to work together—out of the box.

Because Ariett Purchase and Expense Software is deployed on the Microsoft Azure platform, Ariett has been able to rapidly scale to meet customer demand without the overhead required for the fortune 500 and large government markets. Ariett is focused on the mid-market; we bring mobile first mid-market solutions with mid-market pricing to our clients.