Forrester Vendor Landscape E-Purchasing Software 2015 2016

For CIOs
Vendor Landscape: ePurchasing Software, 2015

To 2016
The Shift To SaaS Creates Opportunities And Challenges For CIOs And B2B eCommerce
Professionals On Both The Buy Side And Sell Side
by Andrew Bartels
October 20, 2015
Why Read This Report Key Takeaways

Winning, serving, and retaining customers The ePurchasing Market For Buy-Side
involves more than acquiring the right front-office Software Will Grow By 5% In 2015
technologies; it also involves technologies for The strong US dollar dampens growth; measured
buying, sourcing, contracting, and managing in local currency terms, growth will be 12%, with
vendors of the goods and services that go into software-as-a-service (SaaS) revenues growing
the creation and delivery of customer value. We even faster.
call these technologies ePurchasing software,
The Fastest Growth Will Be In Services
and they support both the CIO’s organization’s
Procurement, CLM, And SRPM
purchases of tech goods and services for its own
Core products for eProcurement and eSourcing
use and business partners’ purchases of all other
are mature and widely adopted, though with SaaS
goods and services. This report provides our
adoption rising. Products that complement the
latest overview of this software market and the
core will do best.
forces that will shape it in 2015 and 2016.
The ePurchasing Market Will Be Dynamic, With
New Entrants And M&A
No single vendor dominates the ePurchasing
market, leaving buyers with many choices among
vendors that are hungry for business.
forrester.com
For CIOs
Vendor Landscape: ePurchasing Software, 2015 To 2016

by Andrew Bartels
with Christopher Andrews, Duncan Jones, Amanda LeClair, and Karen Traikovich
October 20, 2015
Table Of Contents Notes & Resources

2 2015 To 2016 ePurchasing Trends: Cloud In the past 18 months, Forrester has received
And New Entrants vendor briefings from more than 60 companies,
including Apttus, Ariba, Axiom Law, b-pack,
14 How Each ePurchasing Product Will Perform
Basware, Beeline, Billtrust, BirchStreet,
In 2015 And 2016
BravoSolution, CallidusCloud, Capgemini IBX,
Recommendations Chrome River, CLM Matrix, CMA Contiki,
CobbleStone, ConcordCM, Coupa, DCR
24 Your Firm Needs ePurchasing Solutions,
Workforce, Deem, E2Open, Elemica, Esker, EU
Most Likely Diverse Ones
Supply, Exostar, Fieldglass, GEP, GHX, Gimmal
26 Supplemental Material (formerly Prodagio), GT Nexus, Hiperos, Hubwoo,
IBM Emptoris, Infor, Ivalua, Keelvar, Kofax, Liaison,
MM4, Model N, Oildex, OpenText, PaymentWorks,
Perfect Commerce, Pool4Tool, Proactis,
Procserve, Provade, Revitas, SAP, SciQuest,
Seeburger, Selectica, SpringCM, SPS Commerce,
SupplyOn, Synertrade, Tradeshift, Transcepta,
Tungsten, Verian, Viewpost, Xeeva, and Zycus.
Related Research Documents

Market Overview: 10% Growth In ePurchasing
Software Market Makes 2014 A Year For Buyers
Market Overview: Contract Life-Cycle

Management, 2014
Vendor Landscape: B2B Business Networks
Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA

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For CIOs October 20, 2015
2015 To 2016 ePurchasing Trends: Cloud And New Entrants

ePurchasing software is Forrester’s term for the software products designed to help improve all
the stages of the buying process. It encompasses software solutions for eProcurement, eSourcing,
contract life-cycle management, automated spend analysis, accounts payable electronic invoice
presentment and payment (AP eInvoicing), services procurement, supplier risk and performance
management (SRPM), and supplier network services.
The CIO’s organization and sourcing and vendor management professionals use (or should use) several
of these products in their daily activities, including eSourcing tools, contract life-cycle management
(CLM) tools, SRPM products, spend analysis products, and services procurement products. They
also support their organization’s adoption and deployment of eProcurement, eInvoicing, and supplier
network solutions. B2B eCommerce professionals at suppliers interface with many of these systems in
their day-to-day selling, order management, and service activities.
The ePurchasing software market is much smaller than many segments of the enterprise process
application marketplace (such as CRM or financial management), but it’s about twice as large as the
sell-side commerce server market (see Figure 1).
We organize our analysis of trends in the ePurchasing market around our three predictions for how the
overall market will perform in 2015 and five predictions for how specific products or product clusters
will perform.
© 2015 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 2
Citations@forrester.com or +1 866-367-7378
FIGURE 1 The Forrester Tech Industry Wheel For Process Applications: ePurchasing’s Relative Size, 2015
Global revenues by enterprise process application

(US$ billions)
ePurchasing
$6.2
Governance, risk,
Commerce and compliance
servers $1.4
$3.1
Risk management
and payment
$6.0
Electronic design
automation
$6.2 Customer relationship
management
Supply chain $24.9
management
$6.3
Manufacturing
resource
management
Total, Financial management
$6.4
enterprise process $20.7
applications
Call center/ $145.2
contact center
systems
$7.9
Product life-cycle
Other process management
applications $16.3
$24.2
Human resources
management
$15.5
Note: Numbers have been rounded.
1. Global Slowdown To 5% In Dollars, But Local Currency Growth Still In Double Digits
The global ePurchasing market measured in US dollars in 2015 will slow to 5%, the lowest growth in
six years, but will bounce back to double digits in 2016 at 12%. This slowdown — the result of the
strong dollar and soft overall tech demand — will bring the market up to $6.81 billion in 2016. Most of
this growth will occur outside the core transactional apps for eProcurement, eSourcing, and eInvoicing
and in the complementary apps for spend analysis, SRPM, CLM, services procurement, and supplier
networks. We also expect growth in some of the complementary apps that suppliers use, such as sell-
side CLM and, for the first time, accounts receivable (AR) eInvoicing. In particular:
›› The ePurchasing market in local currencies will do better than in US dollars. The slowdown
in the ePurchasing market in 2015 is a result of the strong US dollar, which depresses vendor
revenues from Europe, Canada, Latin America, and Asia Pacific. Measured in constant-currency
terms, the market will grow by 12% in both 2015 and 2016 (see Figure 2-1).
›› Transactional ePurchasing apps will shrink to 50% of the market. Spending on eProcurement
will contract by 2% in 2015, down to $1.36 billion. eSourcing spend will remain flat, reaching
$1.09 billion. AP eInvoicing revenues will rise by 9% to $0.76 billion. But the combination of these
products will equal $3.21 billion, or 52% of the total ePurchasing market in 2015, and will fall to
50% in 2016 (see Figure 2-2).
›› Supplier networks will see the fastest growth in 2015, services procurement in 2016.
Spending on supplier networks will grow by 14% in 2015 to $1.21 billion and will grow at a similar
rate of 16% in 2016 to $1.40 billion. In 2016, spending on services procurement will take over as
the fastest-growing segment of the market, as buyers feel more comfortable using the software to
help build an ecosystem of partners.
›› SaaS subscriptions dominate. Six years ago in 2009, SaaS subscription revenues were just
slightly larger than the combination of license and maintenance revenues. By 2016, SaaS
subscriptions will be nearly twice as large as combined license and maintenance (see Figure 2-3).
›› The Americas will dominate the ePurchasing market. Geographically, the Americas market, led
by the US, will have $3.30 billion in sales in 2015 (54% of the global market), with Europe at around
$2.25 billion (more than one-third), and Asia Pacific far behind at $0.60 billion (about one-tenth)
(see Figure 2-4).
›› Implications for sourcing and vendor management (SVM) professionals and CIOs. If you are
just starting out with building a portfolio of ePurchasing products, you are in a good position to
negotiate good deals on the typical products that SVM professionals generally start with:
eProcurement and eInvoicing apps for automating these repetitive processes. Your opportunities
for savings will be greatest if you plan to buy licensed software products for which demand is
weak, especially in Europe and Asia Pacific. But if your firm already has these transactional apps
and is looking to add the complementary and more strategic apps for sourcing, spend analysis,
SRPM, CLM, or services procurement, the negotiating environment will be more challenging. Most
vendors are seeing good enough demand that they won’t need to cut prices to close deals,
especially for SaaS products.
FIGURE 2 Global ePurchasing Software Revenue Growth Will Slow To 5% In 2015 In US Dollars
2-1 A strong US dollar will reduce dollar-denominated growth in 2015
US dollar and constant currency growth rates in global ePurchasing market

ePurchasing
15%
software in
constant-currency
12% US dollars
9% ePurchasing
software in
US dollars
6%
3%
0%
2011 2012 2013 2014 2015* 2016*
*Forrester forecast
FIGURE 2 Global ePurchasing Software Revenue Growth Will Slow To 5% In 2015 In US Dollars (Cont.)
2-2 eProcurement, eSourcing, and eInvoicing slip to 50% of the ePurchasing market
Vendor revenues by ePurchasing product

(US$ millions)
$6,812
2011 to 2016 CAGR $466
$6,159
$5,848 $1,401
12% $422
Supplier risk and $391
performance $5,331 $1,212
management $4,974 $361 $1,064
16% Supplier network $4,445 $321 $841 $631
16% Services $269 $766 $523
$478 $830
procurement $667 $401
$347 $697 $760
8% AP eInvoicing $644
$294 $608 $381
12% Spend analysis $320 $336
$558 $282 $505
11% Contract life-cycle $267 $426 $453
$212 $344 $386
management $300 $1,082 $1,094 $1,163
5% $991 $1,029
eSourcing $914
3% eProcurement
$1,331 $1,387 $1,388 $1,361 $1,435
9% Total ePurchasing $1,231
market
Percent change 2011 2012 2013 2014 2015* 2016*
eProcurement 8% 8% 4% 0% -2% 5%
eSourcing 11% 8% 4% 5% 1% 6%
Contract life-cycle
21% 15% 12% 10% 6% 12%
management
Spend analysis 32% 26% 5% 14% 5% 13%
AP eInvoicing 11% 9% 6% 8% 9% 9%
Services procurement 26% 18% 15% 19% 9% 21%
Supplier network 16% 15% 10% 27% 14% 16%

Supplier risk and
25% 19% 12% 8% 8% 11%
performance management
Total ePurchasing market 14% 12% 7% 10% 5% 11%
*Forrester forecast
2-3 SaaS subscription revenues grow strongly while license sales decline
ePurchasing vendor revenues by type of revenue

(US$ millions)
$6,812
$1,357
$6,159
$5,848 $1,252
$5,331 $1,150
2011 to 2016 CAGR $4,974 $1,152 $3,711
$4,445 $1,135 $3,209

7% Services $2,898
$979
15% Subscriptions $2,401
3% Maintenance $2,128
-1% License $1,826
9% Total ePurchasing
$882 $933 $980 $946 $984

$832
$809 $829 $846 $819 $753 $759
Percentage change 2011 2012 2013 2014 2015* 2016*
License 15% 2% 2% -3% -8% 1%
Maintenance 15% 6% 6% 5% -3% 4%
Subscriptions 16% 17% 13% 21% 11% 16%
Services 10% 16% 1% 0% 9% 8%
Total ePurchasing 14% 12% 7% 10% 5% 11%
*Forrester forecast
2-4 EMEA will grow by 3%; Asia Pacific will grow by 2%
ePurchasing vendor revenues by geography

(US$ millions)
$6,812
$3,668
2011 to 2016 CAGR $6,159
$5,848 $3,302
9% Americas $3,069
8% Europe, the Middle $5,331
East, and Africa $4,974 $2,838
9% Asia Pacific $4,445 $2,669
9% Total ePurchasing $2,348
$2,490
$2,189 $2,254
$1,970
$1,793
$1,662
$512 $523 $590 $604 $654

$435
Percentage change 2011 2012 2013 2014 2015* 2016*
Americas 13% 14% 6% 8% 8% 11%

Europe, the Middle East,
13% 8% 10% 11% 3% 10%
and Africa (EMEA)
Asia Pacific 24% 18% 2% 13% 2% 8%
Total ePurchasing 14% 12% 7% 10% 5% 11%
*Forrester forecast
2. The ePurchasing Market Will Remain Fragmented
Unlike the CLM market, the ePurchasing market has yet to gain a dominant vendor like Salesforce.
The largest vendor is clearly SAP, due to the combination of wide adoption of its security and risk
management solution and related products within its enterprise resource planning (ERP) client base
and its acquisition of Ariba and Fieldglass.1 But SAP’s position is by no means dominant, and it faces
strong competition across the ePurchasing product landscape. This fragmentation of the market is the
result of three forces:
›› While some buyers want a suite, many stakeholders want best-of-breed. As we have seen, the
ePurchasing market consists of eight different products. While the chief purchasing officer (CPO) is
often a key decision-maker and will push for a suite, many other stakeholders with more focused
needs also get involved. For example, the chief financial officer (CFO) will have a voice in AP
eInvoicing and spend analysis; the general counsel in CLM; the CIO in IT-specific purchases; and
B2B sales professionals in CLM and potentially for services procurement and AR eInvoicing. As a
result, specialist vendors with strongly differentiated products still find buyers.
›› Many vendors offer suites; few have complete suites with strength across the board. As we
look across the vendor landscape, we can see only one vendor — SAP — that has a complete and
competitive offering across all the categories, and even here its product strengths are scattered
between SAP, Ariba, and Fieldglass. Capgemini IBX, GEP, Ivalua, Oracle, and SciQuest come close,
but each has gaps in spend analysis, SRPM, and/or services procurement. Several vendors, such
as BravoSolution, IBM Emptoris, Pool4Tool, and Zycus, have strong SVM suites that combine
eSourcing, spend analysis, SRPM, and CLM. Others, such as Apttus, Basware, Coupa, GHX,
Perfect Commerce, Proactis, Selectica, and Verian, have put together suites that are strong in
eProcurement, eInvoicing, and eSourcing, with some coverage of other products. But they also
have gaps, whether in services procurement, spend analysis, SRPM, or CLM. This leaves room for
specialist vendors (see Figure 3-1).2
›› Each product category has a different set of leading vendors. The failure of any vendor to offer
a compelling suite of products across the board and the many stakeholders in the buying process
leave room for specialist vendors to carve out sustainable positions in each of these products. Our
listing of the vendors in each product by their relative revenues for each product shows that are
different specialist vendors with significant market presence in each (see Figure 3-2).
›› Implications for CIOs and SVM professionals. There is no single solution for ePurchasing that will
be best-in-class in all of the eight products that make up this market. At best, you will be able to find
three to five high-quality, interrelated products from one vendor. But it is highly unlikely that you will
be able to get all eight products from one vendor and be happy with the result. Thus, you should
expect to have a mixed portfolio of ePurchasing products from two to four different vendors.
FIGURE 3 Who’s Who In the ePurchasing Software Market
3-1 More than 20 vendors offer ePurchasing suites of varying breadth
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Apttus
Ariba *
Basware
Capgemini IBX
Coupa
Esize
Full functionality
GEP Partial functionality
No offering
GHX
Gimmal
IBM Emptoris
Infor Global
Ivalua
Oracle
Perfect
Commerce
Pool4Tool
Proactis
*
SAP
SciQuest
Selectica
Verian
Zycus
*Fieldglass
FIGURE 3 Who’s Who In the ePurchasing Software Market (Cont.)
3-2 The 12 largest vendors by product, measured by 2015 product revenues
Supplier
Contract risk and
life-cycle Spend AP Services performance
Rank eProcurement eSourcing management analysis eInvoicing procurement management
SAP
1 SAP/Ariba SAP/Ariba SAP/Ariba SAP/Ariba Basware Achilles
Fieldglass
Lexmark
Bravo
2 Oracle Oracle Apttus (Kofax and IQNavigator SAP/Ariba
Solution
ReadSoft)
Bravo IBM Aravo
3 Coupa Oracle SAP/Ariba Beeline
Solution Emptoris Solutions
IBM DCR CVM
4 Infor Scanmarket Zycus Syncada
Emptoris Workforce Solutions
Capgemini IBM IBM
5 SciQuest GEP Bottomline Informatica
IBX Emptoris Emptoris
Infor (GT
6 ePlus Argentrics 8over8 Sievo PeopleFluent SciQuest
Nexus)
Capgemini Rossyln Oildex
7 Adaco Revitas Oracle Hiperos
IBX Analytics (ADP P2P)
IBM
8 Basware SciQuest Symfact Synertrade Esker Provade
Emptoris
OpenText
PRO
9 SciQuest MediaGrif Exari SciQuest Gimmal Active
Unlimited
Community
10 Verian I-Faber Gimmal Spend360 Verian ZeroChaos HICX
CLM Chrome
11 GEP Pool4Tool Ivalua Basware GEP
Matrix River
12 Pool4Tool GEP CobbleStone Pool4Tool Oracle Esize Oracle
3. New Entrants And Acquisitions Will Reshape The Vendor Landscape
The absence of a single strong vendor with capable products across the ePurchasing product portfolio
does not mean that vendors are not trying to build that kind of portfolio. Over the past year, we have
seen a series of mergers and acquisitions, designed to help vendors offer broader portfolios or absorb
competitors. In the former category were Gimmal’s acquisition of Prodagio; Selectica’s acquisition of
first Iasta and then b-pack; Oildex’s acquisition of ADP’s P2P eInvoicing product and supplier network;
Proactis’ buying of Intesource, EGS, and Intelligent Capture; and Infor’s purchase of GT Nexus. In
the latter category were Basware’s purchase of the UK supplier network Procserve, Beeline’s merger
with OnForce, Perfect Commerce’s acquisition of Hubwoo and its supplier network, and Lexmark’s
adding both Kofax and ReadSoft to its invoice automation portfolio. 2014 and 2015 also saw new
entrants, such as CallidusCloud, ConcordCM, Corridor Solutions, Infor, and Model N offering SaaS
CLM solutions (Model N has long had CLM in its revenue management suite, but not sold separately);
PaymentWorks in supplier connectivity; Apttus and Workday in eProcurement suites; Tradeshift in
eProcurement; VersaPay in eInvoicing; and Keelvar in the sourcing optimization space. Also, visibility
increased for slightly older products like Hellios in SRPM, Icertis in CLM, OpenText with its revitalized
CLM offering, and MM4 (an Xchanging unit) in eSourcing.
As a result, we see the following changes taking place in the competitive landscape:
›› SAP and Oracle will lose market share to a strengthening pack. In 2015, SAP’s and Oracle’s
combined share of the ePurchasing market will slip to 37% from 39%, as demand for their licensed
products will remain weak. The 2013 and 2014 gains in their market share were entirely due to
SAP’s acquisition of Ariba and Fieldglass; while these vendors’ SaaS subscription revenues will
continue to grow in 2015 and 2016, SAP’s license revenues will sag in 2015 and its substantial non-
US revenues will suffer when converted from weak euros or yen into strong US dollars. Meanwhile,
Oracle has sat on the sidelines, and without acquisitions, its organic growth will lag the overall
market (see Figure 4).
›› Midtier vendors will use organic growth and acquisitions to expand their share. Among the 40
largest ePurchasing vendors, some, like Basware, Beeline, Infor, Perfect Commerce, and Selectica,
have used acquisitions as well as organic growth to expand their market share in 2015. Others in
this tier, like Achilles, Apttus, BravoSolution, Coupa, DCR Workforce, GEP, GHX, IBM Emptoris,
IQNavigator, and SciQuest, will rely purely on organic growth. Overall, the third- to 10th-largest
vendors will maintain their market share of 17% from 2014 to 2015; those in the 11th to 20th
positions will increase their share from 12% to 13%; and those in the 21st to 40th positions will
grow share from 14% to 16%.
›› Implications for CIOs and SVM professionals. The ePurchasing market remains intensely
competitive, with even the largest vendors like Oracle and SAP unable to dictate terms. As
potential purchasers of ePurchasing products, you will continue to face a wide range of choices.
While acquisitions will slightly shrink the number of players, new entrants into most of the
ePurchasing product categories (whether through launch of new products or purchase of an
existing vendor by a larger vendor outside that category) will replace those lost to consolidation.
FIGURE 4 Midtier Vendors Will Gain At The Expense Of SAP And Oracle Or Small Vendors
4-1 Share of 2011 to 2015 vendor revenues from ePurchasing products by size ranking of vendors
Share of vendors’ ePurchasing revenues by size rankings
(percentage of total)
100% 100% 100% 100% 100%

Top 2 vendors 27% 30% 39% 39% 37%
3rd- to 10th-largest vendors
11th- to 20th-largest vendors
21st- to 40th-largest vendors
All other vendors 25% 24%
16% 17% 17%
12% 13% 13%

13% 12%
15% 15% 16%
15% 14%
20% 19% 17% 17% 17%
2011 2012 2013 2014 2015*
4-2 2011 to 2015 vendor revenues from ePurchasing products by size ranking of vendors
Share of vendors’ ePurchasing revenues by size rankings
(US$ millions) $6,401
$6,076 $2,361
Top 2 vendors $5,539 $2,394
3rd- to 10th-largest vendors $5,150 $2,150
11th- to 20th-largest vendors $4,592 $1,525
21st- to 40th-largest vendors $1,251
All other vendors
$1,119
$1,248 $1,034
$1,153 $912
$844
$737
$657 $703
$555 $1,007
$821 $875
$712 $767
$922 $954 $953 $1,035 $1,070
2011 2012 2013 2014 2015*

Note: Totals include sell-side CLM, which is not included in Figure 2.S.
Source: Forrester Research based on vendor briefings; public financial statements from Ariba, Basware,
E2Open, Esker, Hubwoo, MediaGrif, ReadSoft, SciQuest, Selectica, and Wax Digital; and guidance from
some vendors
*Forrester forecast
How Each ePurchasing Product Will Perform In 2015 And 2016

Because the ePurchasing product portfolio has so many different products at different states of
maturity and adoption, one has to look at that portfolio at the product level, not just at the suite level.
This section reviews the growth prospects and demand dynamics for eProcurement, eInvoicing, CLM,
services procurement, and the emerging suites of spend analysis, SRPM, and eSourcing. (We have
described the vendor landscape of the last segment of the ePurchasing market — supplier networks —
in a recent report on business networks.3)
4. In eProcurement, The Shift From On-Premises To SaaS Takes Off
The days when the ERP vendor was the default option for eProcurement — the apps for presenting
catalogs of approved items for purchases to employees, generating requisitions, turning them into
purchase orders for delivery to suppliers, and capturing the receipt of goods — are rapidly passing
into history.
›› More and more, eProcurement is shifting to SaaS. While eProcurement products from ERP
vendors like Epicor, Infor, Oracle (eBusiness Suite, PeopleSoft, and JD Edwards), and SAP will
still represent more than half of total eProcurement revenues, much of that will be in the form of
maintenance revenues from existing products. All of the growth in eProcurement will come from
SaaS products, whether from the SaaS products of the ERP vendors (Oracle Procurement Cloud,
SAP Ariba) or from the SaaS specialists (see Figure 5).
›› SaaS subscription revenues will exceed eProcurement license revenues in 2015. While Coupa
has attracted a lot of attention, a wide range of vendors offer SaaS eProcurement solutions,
including Adaco, Ariba, Basware, BirchStreet Systems, Capgemini IBX, ePlus, GEP, GHX, Ivalua,
Oracle Procurement Cloud, Paramount Technologies, Perfect Commerce, Pool4Tool, Proactis,
Puridiom, SciQuest, Selectica, Verian, and Wax Digital. SaaS subscription revenue will not only
pass license revenues in 2015, it will eclipse maintenance revenue in 2016. License, maintenance,
and services revenues will shrink by 11%, 6%, and 1%, respectively, in 2015. License revenues will
continue to decline in 2016, while maintenance and services will grow slowly by 2% in 2016 (see
Figure 5-2 in the linked Excel spreadsheet).
›› Implications for CIOs and SVM professionals. You may be attracted to the eProcurement
products from ERP vendors because they have the advantages of easy integration with your ERP
products (at least if they are both on the same version) and a common look and feel across both
sets of products. With ERP vendors desperate to generate license and maintenance revenues
from these products, you will also be able to negotiate big discounts — as much as 70% or 80%
off of list price for eProcurement products that are part of broader ERP deals. But you should also
include SaaS eProcurement vendors in your selection process because they offer better usability
and more innovation than your ERP vendor’s licensed eProcurement offering.
FIGURE 5 SaaS Adoption Accelerates In eProcurement
eProcurement software revenues by type of vendor

(US$ millions)
ERP vendors’ $1,435

$1,387 $1,388 $1,361
eProcurement products $1,331 $915
$1,231 $1,012 $978 $898
SaaS eProcurement $933
vendors $829
Geographic or industry
eProcurement vendors
$362
$321
$264 $259 $256 $280
$137 $138 $118 $130 $142 $158

2011 2012 2013 2014 2015* 2016*
*Forrester forecast
5. Adoption Of AP eInvoicing Starts To Drive Adoption Of AR eInvoicing
Accounts payable eInvoicing (AP eInvoicing) has experienced steady growth since the late 1990s as
firms seek to reduce the cost and cycle time of processing and validating invoices for payment. In
recent years, the expanded offerings that support dynamic discounting — mechanisms for suppliers to
offer variable discounts to customers for early payment — have increased interest in AP eInvoicing.
However, there has been limited interest in and availability of AR eInvoicing solutions that would allow
suppliers not only to generate electronic invoices but also to track their status and automatically respond
to advanced payment notices from buyers. The reason? Suppliers have had to add AR eInvoicing to their
existing paper invoicing process, at added cost, while buyers have been able to use AP eInvoicing to shut
down their systems for processing the paper invoices they used to receive. This asymmetry of eInvoicing
solution adoption has kept dynamic discounting from achieving its potential — suppliers cannot handle
the buyer requests for discounts at scale. And the limits on dynamic discounting have caused growth in
AP eInvoicing solutions to slow to single digits.
Here are the key trends in eInvoicing for 2015 and 2016:
›› Specialist AP eInvoicing vendors will still dominate. This market has been divided primarily
between three groups of vendors: 1) specialist vendors, like Basware, Bottomline Technologies,
ChromeRiver, Direct Insite, Fundtech’s Accountis, Gimmal, and Oildex (formerly ADP P2P); 2)
scan-and-capture vendors like Esker, Lexmark (Kofax and ReadSoft), and OpenText; and 3)
eProcurement vendors that added eInvoicing modules, such as Ariba, BirchStreet, Capgemini IBX,
Coupa, GEP, Ivalua, Oracle (eBusiness suite and PeopleSoft), Perfect Commerce, Proactis, and
Verian. Banks from time to time have played in this market (such as American Express’ acquisition
of Harbor Payments and JP Morgan Chase’s acquisition of Xign), but only Syncada has been a
consistent player. While the market share of eProcurement vendors has risen to 18% in 2015, it has
grown at the expense of the bank providers — the specialist vendors have increased their market
share to 48%, while the scan-and-capture vendors have held steady at 25% (see Figure 6).
›› Billtrust offers a path to success in AR eInvoicing. Since 2000 or so, all the action in eInvoicing
has been on the buy side, or AP eInvoicing. But with more and more large companies adopting AP
eInvoicing, we are reaching an inflection point in which sellers can start to assume that more than
half of their enterprise clients want to receive eInvoices and will want to have an AR eInvoicing
solution to automate and streamline their side of the equation. Billtrust is currently the leading AR
eInvoicing vendor, but others like VersaPay are starting to join it.
›› Implications for CIOs and SVM professionals. The primary purchasers of eInvoicing solutions are
the heads of the AP department and/or the chief procurement officer, so the CIO’s role is mostly
as an enabler of these business leaders. The growing availability of SaaS options means that you
may be presented with a de facto decision by the CFO and the finance organization that chose a
SaaS eInvoicing vendor, so you need to be proactive in helping find and vet the right product. Most
vendors offer similar enough solutions that you can negotiate discounts from these vendors. If your
firm handles a lot of document capture in general, the scan-and-capture vendors can be a good
alternative because they can support both paper invoices and other paper documents such as
applications or claims filings that you may be handling.
FIGURE 6 SaaS Rules In AP eInvoicing Software
AP eInvoicing software revenues by type of vendor

(percentage of total AP eInvoicing revenues)
eInvoicing specialists 100% 100% 100% 100% 100% 100%

eProcurement vendors 46% 45% 46% 47% 48% 48%
Banks
Scan and capture
vendors
15% 16% 16% 18% 19%

18%
12% 11% 10% 10% 9% 9%

27% 28% 27% 26% 25% 25%
2011 2012 2013 2014 2015* 2016*

*Forrester forecast
6. CLM’s Strong Growth And Shift To SaaS Attract New Entrants
Our definition of the ePurchasing market includes contract life-cycle management products that firms
use for buy-side contracts. But this report also addresses the sell-side CLM market because it is hard
to separate buy-side from sell-side solutions.
›› CLM market growth will slow due to the strong US dollar. For CLM, the 6% growth in 2015 and
11% growth in 2016 is about the same as overall market growth. SaaS versions of CLM are fueling
much of that growth, with SaaS subscriptions for CLM as a whole growing by 14% in 2015 and
16% in 2016.
›› CLM is attracting new entrants. Over the past year, CallidusCloud, Infor, and Model N have
announced new SaaS CLM products. OpenText has released a significantly upgraded version of
its CLM product, with the infusion of OpenText’s business process management engine to support
linkage of the contracting process with other related processes. Icertis and Corridor Software,
while founded before 2014, have been gaining customers with their Microsoft Azure-hosted and
Microsoft SharePoint-based products, respectively. In the midmarket, CobbleStone has become
more active in the market with its SaaS version, and at the low end, ConcordCM and SpringCM are
making waves with basic contract management products.
›› SaaS adoption is greater for sell-side CLM than for buy-side CLM. The widening adoption of
Salesforce for CLM has led to a rapid acceptance of SaaS CLM for sales contracts, with Apttus
the main beneficiary, thanks to its early adoption of the Force.com platform, Salesforce’s own use
of Apttus, and its promotion of Apttus in the AppExchange. However, other vendors like Novatus
and SpringCM also are on the AppExchange (soon to be joined by Model N), and still other vendors
like CobbleStone and Revitas are integrated with Salesforce.4 The result is that sell-side CLM SaaS
subscriptions will exceed 40% of total CLM revenues by 2016, compared with the SaaS buy-side
CLM revenue share of 27% (see Figure 7).
›› Buy-side CLM becomes part of broader SVM suites. Many of the vendors that offer buy-
side CLM do so as part of a broader ePurchasing suite, for example, Ariba, GEP, IBM Emptoris,
Ivalua, Oracle (eBusiness suite and PeopleSoft), SAP, SciQuest, and Selectica. These products
appeal to companies that deal primarily with buy-side contracts (e.g., governments, healthcare
providers, educational institutions, and retailers) and that use CLM in concert with related products
like eSourcing, spend analysis, and SRPM. But other vendors that may focus more on sell-side
contracts will often have clients using their products for buy-side contracts as well, such as Apttus,
CMA Contiki, Exari, Gimmal, Novatus, Revitas, and Symfact.
›› Implications for CIOs and SVM professionals. CLM touches many stakeholders within firms,
including the general counsel, CFO, head of sales, CPO, and the CIO. For CIOs, CLM provides
you with a tool for creating and negotiating contracts with tech vendors and for managing those
vendor relationships. For SVM professionals, CLM is a critical tool you can use for effective vendor
management, and under the right circumstances, it should be part of a broader SVM suite from the
same vendor. But circumstances may not be right if there is a strong need for a CLM solution for
sell-side contracts. In that case, you may need to have one CLM product for buy-side contracts
that is part of an SVM suite from the same vendor. Or, if the general counsel resists the idea of
having the legal staff working with two CLM products, you may need to use the CLM product that
the sales organization chooses.
FIGURE 7 The SaaS Revolution In CLM Rolls On
SaaS subscription revenues as a percentage of total CLM software revenues
Sell-side CLM Buy-side CLM
40% 41%
37%
33%
30%
26% 27%
24% 24%
17% 19%
15%
2011 2012 2013 2014 2015* 2016*
*Forrester forecast
7. Services Procurement Grows As Acquisitions Drive Consolidation
Services procurement products — also known as vendor management systems (VMSes) when staffing
is primarily involved — are designed to handle the unique characteristics of services spending. These
include different price models (time-based, time-and-materials-based, milestone-based, deliverables-
based, etc.), an iterative buying process that involves changing timing and scope of deliverables based
on vendor responses, tracking and recording the performance of the vendors, and, in many cases, the
need to allow the service provider access to your facilities. After a burst of acquisition activity in 2014
(when IQNavigator bought ProcureStaff and SAP purchased Fieldglass), this product category has
settled down to strong, organic growth of 19% in 2014, 9% in 2015, and 21% in 2016. As a result:
›› Services procurement vendors will continue their dominance. The big three of Beeline,
IQNavigator, and Fieldglass have the strongest products for project-based services as well as
contractors and temporary workers. Along with DCR Workforce, IBM Emptoris, and Provade, they
remain the top choice for firms that want a product that helps manage the widest spectrum of
their services spending. Even with Fieldglass now falling into the camp of eProcurement vendors
that also offer services procurement tools, the services procurement specialists will capture 46%
of the revenues in 2016. eProcurement vendors like Coupa, Esize, Ivalua, Oracle (eBusiness suite
and PeopleSoft), and SAP (after the Fieldglass acquisition) will have a 38% market share, but that’s
mostly due to Fieldglass — in most other cases, their services procurement products are pretty
limited. VMS specialists like PeopleFluent, PRO Unlimited, and ZeroChaos, which concentrate on
contingent workers and dabble in other services, make up the rest of this market and are losing
market share, down to 15% in 2016 (see Figure 8).
›› Using services procurement for services is growing faster than for contingent workers. The
biggest use case for services procurement — whether broader services procurement products or
more narrowly focused VMS tools — will continue to be to hire and manage contingent workers.
We estimate that a bit less than 75% of these products’ revenues come from contingent workers,
and a bit more is coming from their use for buying statement-of-work, outsourcing, and other
services.5 However, revenues associated with broader services will grow more rapidly than for
contingent workers, signaling that users of services procurement are starting to use these products
for more than temporary labor. Still, only a small fraction of total services purchases are executed
with these products, while more than half of all spending on temporary workers (at least in the US)
flows through them.
›› Implications for CIOs and SVM professionals. CIOs are ideally positioned to pilot services
procurement tools to manage spending on contractors, tech consulting and systems integration
services, and tech outsourcing and by so doing provide the proof-of-concept tests for using this
tool elsewhere in finance, legal, sales, marketing, and operations. SVM specialists can help in
spreading the word to these other business units. Still, adoption will need to occur department
by department, focusing, for example, on the marketing and advertising services used by the
chief marketing officer; the outside legal services used by the general counsel; and the audit,
accounting, and consulting services used by CFO. However, with just three vendors dominating the
market, your opportunities to negotiate discounts from these vendors will be limited.
FIGURE 8 Services Procurement Sales Slow In 2015 Due To The Strong Dollar And Resume Strong Growth In 2016
Services procurement software revenues by type of vendor

(percentage of total services procurement market)
100% 100% 100% 100% 100% 100%

Services procurement 58% 61% 62% 51% 48% 46%
vendors
VMS vendors
General eProcurement
vendors
16% 15%
16%
22%
21% 21% 38%
33% 35%
20% 19% 17%
2011 2012 2013 2014 2015* 2016*
*Forrester forecast
8. SVM Suites Absorb Spend Analysis, SRPM, And eSourcing
Sourcing and vendor management professionals benefit from using products for creating and managing
sourcing events, analyzing corporate spending for the best sourcing opportunities (and areas of the
greatest leakage of spending from preferred suppliers), and keeping track of the business information,
performance, and risks associated with suppliers. While those could be different products from different
vendors, increasingly SVM professionals are looking for, and vendors are offering, integrated suites. This
trend is most concentrated among larger firms in manufacturing, retail, wholesale, utilities, and
telecommunications that have complex direct materials supply chains. Smaller firms and those in
services industries will continue to purchase eSourcing tools on a standalone basis or linked to
eProcurement products. Given these considerations, here are the key trends for these products:
›› Automated spend analysis starts to approach saturation. Firms use these products for
cleansing, normalizing, and categorizing spend data and for providing reports and drill-down
analysis from this data on a company’s spend patterns. While these products are by no means
commoditized, their market is mostly large multinational firms with multiple ERPs, many of whom
have already acquired these products. Specialist firms that focus on industries like financial
services (Rosslyn Analytics) or retail (spend360) or tailor their products to new audiences like
the CFO have been able to outgrow the market (see Figure 9). But elsewhere spend analysis is
becoming a module in a broader SVM suite. As a result, this product category will grow in line with
the overall ePurchasing market, with 5% growth in 2015 and 13% in 2016.
›› Supplier risk and performance management (SRPM) solutions optimize supplier bases.
The four components of these solutions are at different stages of maturity and commoditization.
The core of supplier information management (that is, supplier master data management) is
mature and fully commoditized. Supplier performance management (rating of suppliers based on
key performance metrics and employee evaluations, with improvement plans) is heading in this
direction. In these cases, SRPM offerings are becoming modules in broader SVM suites, with
shrinking price points. But there is still differentiation in supplier risk management (information
on suppliers’ financial condition, diversity status, regulatory compliance, and environmental and
social responsibility ratings), which will help vendors like Aravo, HICX, and Hiperos outgrow the
market. The greatest differentiation is in supplier qualification management, where Achilles is the
dominant vendor, thanks to its careful building of trust communities of buyers and suppliers in
distinct industries. A few other vendors like Hellios, Hiperos, and SAP are trying to emulate Achilles’
success. These different patterns of commoditization will lead to above-average growth of 8% in
2015 and steady growth of 11% in 2016 (see Figure 10).
›› eSourcing tools are mature, so suite-based offerings will replace standalone. It is not hard to
create a tool that allows employees to accomplish the core functions of eSourcing. The only real
differentiation is for sophisticated products that support complex bids with split awards to different
vendors, such as can be found with IBM Emptoris, SciQuest, and the new Irish vendor Keelvar.
As a result, eProcurement vendors like b-pack (now part of Selectica), Coupa, Ivalua, Proactis,
SciQuest, and Verian have created or acquired their own eSourcing offerings, joining vendors like
Ariba, Capgemini IBX, Oracle (eBusiness Suite and PeopleSoft), Perfect Commerce, Pool4Tool,
SAP, and Zycus that have offered similar pairings. Similarly, spend analysis vendors like Zycus
have added eSourcing to their portfolios. These eSourcing additions are almost always SaaS-
based, with low price points. That combination will tilt eSourcing more and more toward SaaS
subscriptions and keep growth in revenues in the low single digits (see Figure 11).
›› Implications for CIOs and SVM professionals. High-end eSourcing tools like SciQuest’s
Advanced Sourcing Optimizer or IBM Emptoris; advanced spend analysis solutions from Ariba,
BravoSolution, GEP, IBM Emptoris, and Zycus; and best-of-breed SRPM vendors like Aravo
Solutions, HICX, and Hiperos in supplier risk or supplier performance management or Achilles in
supplier qualification management still stand out from the others in terms of functionality. But for
most firms, the spend analysis, SRPM, and eSourcing tools in an SVM suite will offer adequate
capability at lower prices in 2015.
FIGURE 9 Automated Spend Analysis Remains In Demand, Both In Suites And From Specialists
Automated spend analysis specialist versus suite vendor

(percentage of total spend analysis vendor revenues)
Spend analysis specialists 100% 100% 100% 100% 100% 100%

7% 7% 8% 9% 10% 10%
Sourcing and vendor
93% 93% 92% 91% 90% 90%
management suites
2011 2012 2013 2014 2015* 2016*

*Forrester forecast
FIGURE 10 SRPM Convergence With Spend Analysis Stabilizes At A Quarter Of The Market
SRPM vendor focus

(percentage of total SRPM vendor revenues)
Vendors that offer both 100% 100% 100% 100% 100% 100%
SRPM and spend analysis 21% 25% 27% 27% 26% 27%
SRPM-only vendors
79%
75% 73% 73% 74% 73%
2011 2012 2013 2014 2015* 2016*
*Forrester forecast
FIGURE 11 Three Types Of eSourcing Vendor Divide The Market Evenly
eSourcing software revenues by type of vendor

(percentage of total eSourcing revenues)
100% 100% 100% 100% 100% 100%

ERP vendors’ 35% 36% 33% 32% 34% 37%
eSourcing products
General eSourcing
vendors
Geographic or industry
eSourcing vendors 30% 29%
31% 28% 28%
27%
37% 39% 39%

34% 36% 36%
2011 2012 2013 2014 2015* 2016*
*Forrester forecast
Recommendations
Your Firm Needs ePurchasing Solutions, Most Likely Diverse Ones

Every firm buys goods and services from other businesses. While smaller firms (with fewer than 500
employees, say) can get away without using ePurchasing products for these activities, midsize and
larger firms will need at least eProcurement and eInvoicing (most likely SaaS versions) to make these
processes more efficient with better controls. The larger the firm, the more it will need at least some of
the other products in the ePurchasing portfolio, with the largest firms needing all of them. As CIO, you
can help your firm make the best choices by:
›› Matching your firm’s ePurchasing portfolio to its industry. Firms in goods-producing industries
with complex supply chains will want to include eSourcing, spend analysis, SRPM, and CLM,
ideally from the same vendor. Firms in services industries will want to focus on CLM and services
procurement. Governments will want specialized eSourcing products tailored to the public-
disclosure requirements of government tendering. So, focus on vendors that have expertise and
experience in your industry.
›› Accepting a mix of suites and best-of-breed. SVM suites make sense for most clients, and
combinations of eProcurement, eInvoicing, and basic eSourcing will be sufficient for others. But
in categories like services procurement, high-end spend analysis, high-end SRPM, and especially
CLM, specialist vendors still have distinctly better offerings than most suite vendors. And there will
be different stakeholders besides the CPO who will have their own requirements that will need to
be satisfied. So, a certain amount of diversity in your ePurchasing product portfolio will in many
cases be unavoidable and even desirable.
›› Going with SaaS. The arguments against using SaaS in ePurchasing (e.g., tight integration of
eProcurement with ERP or security concerns about putting contracts in the cloud) have mostly
collapsed. Most of the leading vendors in each category are SaaS vendors, and in some categories
like services procurement and SRPM, almost all the vendors offer only SaaS.
Implications For B2B Sales Professionals: Know What Your B2B Customers Will Use
Your B2B customers will increasingly be using ePurchasing software to interact with you in the areas
of procurement, invoicing, contracting, and services procurement. You need to understand what and
where they are using these products in order to conduct eCommerce with them. Remember, though,
that ePurchasing software adoption is still concentrated at firms with more than 1,000 employees, and
especially among firms with more than 20,000 employees. Small companies are generally not adopting
these products, and adoption among midtier firms is limited.
›› Prepare for integrating with SaaS eProcurement, not just supplier networks. As your clients
expand their usage of SaaS eProcurement systems, your challenges of linking to them will grow for
the automated receipt of purchase orders and related documents. You will face a complex mix of
supplier networks for reaching some clients, as well as direct connection from SaaS eProcurement
systems for reaching others.
›› Support adoption of AR eInvoicing. While B2B sales professionals generally don’t worry too
much about the invoicing and payments for the products that they sell, their colleagues in the
finance organization do: When and how much their customers pay have big impacts on firm
revenues. The widening adoption of AP eInvoicing solutions means that firms increasingly are
dealing with clients who want to receive electronic invoices and who want to explore receiving
discounts for early payment. Adoption of AR eInvoicing solutions to support these activities is
starting to become a critical priority for the AR finance teams that support B2B sales teams.
›› Adopt sell-side CLM to match your customers’ adoption of buy-side CLM. Of all the products
in the ePurchasing portfolio, CLM has the most relevance to B2B sales professionals. First, in many
cases where buyers have the negotiating leverage, you will be working with draft contracts coming
out of their CLM system, so you need to know how to use it. Second, your CPO and general
counsel counterparts will be pushing for CLM solutions that meet their needs, so you need to
understand those vendors to see whether they will work for your sell-side contract needs or if you
need to be more aggressive in advocating for your own requirements.
›› In services industries, encourage your clients to adopt services procurement tools. Staffing
firms have often been active promoters of VMS tools to their clients, because these tools
streamlined their own operations for matching workers with clients and tracking the time worked
by contingent workers. Similar opportunities exist for B2B sales professionals with project-based
services like consulting, market research, or outsourced services to design their systems for
pricing, quoting, and configuring their deliverables around the clients using these tools. But the
internal hurdles to get these process changes are formidable, especially if your firm positions itself
as an elite provider of high-quality, high-cost customized services.
Engage With An Analyst

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Supplemental Material
Online Resource
The underlying spreadsheet detailing the market estimates and forecasts in Figures 1 through 11 is
available online.
Companies Interviewed For This Report

8over8 Coupa
Achilles Curtis-Fitch
Adaco CVM Solutions
ADP P2P (prior to its acquisition by Oildex) DCR Workforce
Apttus Direct Insite
Aravo Dolphin
Ariba (prior to its acquisition by SAP) E2open
Axxerion Ecteon
b-pack (prior to its acquisition by Selectica) Elemica
Basware Epicor
Beeline ePlus
BidSync Esize
BIQ Esker
BirchStreet Exari
BizNet Solutions Exostar
Bottomline Technologies Fieldglass (prior to its acquisition by SAP)
BravoSolution Fundtech (Accountis)
Capgemini IBX GEP
Cegedim Deskom GHX
Chrome River Gimmal
Citicus GT Nexus (prior to its acquisition by Infor)
CLM Matrix Hellios
CMA Contiki HICX
CobbleStone Hiperos
CombineNet (prior to its acquisition by SciQuest) Hubwoo (prior to its acquisition by Perfect
Commerce)
ConcordCM
I-Faber
Corridor
Iasta (prior to its acquisition by Selectica) Proactis
IBM Emptoris Procserve (prior to its acquisition by Basware)
Icertis Procurestaff (prior to its acquisition by

IQNavigator)
Infor
Promena
Informatica
ProQure
Intesource (prior to its acquisition by Proactis)
Provade
IQNavigator
PurchasingNet
Ivalua
ReadSoft (prior to its acquisition by Lexmark)
Keelvar
Revitas
Kofax (prior to its acquisition by Lexmark)
Rosslyn Analytics
Lavante
SAP
Lexmark
Scanmarket
MediaGrif
SciQuest
Mercado Eletronico
Selectica
MM4
Sesami
Neogrid
Siemens PLM
Nipendo
Sievo
Novatus
spend360
Oildex
SpringCM
OpenText
SupplyOn
OpenWindows
Symfact
Oracle (including eBusiness Suite, JD Edwards,
Oracle Cloud Procurement, and PeopleSoft) Syncada
Paramount Technologies Synertrade
PeopleFluent Taulia
Perfect Commerce Trade Extensions
Pool4Tool Tradeshift
PRO Unlimited Transcepta
Tungsten Vortal
Verian WaxDigital
VersaPay Workday
Viewpost ZeroChaos
Vinamaya Zycus
Endnotes
SAP also acquired Concur, an expense management vendor, though we do not include expense management within
1
our current definition of ePurchasing software.
While full functionality should be clear for products like eProcurement, eInvoicing, or eSourcing, our definition of full
2
functionality for other products needs more clarity. So, our definition of spend analysis includes the ability to cleanse,
normalize, and analyze all the spend data of a business, not just the spending going through an eProcurement
product. For a full functionality rating, we also are looking for the vendor to have a robust knowledge base to feed its
classification engine, which depends on the vendor having done full spend analysis for several dozen clients over at
least two years.
For a full functionality rating in CLM, we are looking for products that 1) treat the contract as a collection of discrete
terms and conditions that can be assembled (with clause-level controls as to what can or can’t be changed and
workflows for approval of those changes) and disassembled after completion (for integration with transaction systems
that need that contract information) and 2) have been sold as a standalone solution, not just as part of a suite. Vendors
that treat the contract as a whole document would get a partial functionality rating.
Regarding services procurement, for full functionality, we are looking for products that support all the pricing options
for services (time-and-materials, time-based, milestone-based, deliverables-based, SLA-based); that support
scheduling, credential-checking, and onboarding of contingent staff or consultants; and that have built-in mechanisms
for recording and capturing time worked and quality of work performed. We gave partial functionality ratings to
solutions that have forms-based requests for services, if there is demonstrated evidence of different types of forms for
different types of services.
Regarding supplier network, we have taken the position that SaaS eProcurement vendors that connect to suppliers
do not have a supplier network, which we have defined as a many-to-one-to-many model, which includes buy-side
clients who are not using the vendor’s own eProcurement product. We give partial functionality ratings to SaaS
vendors who are handling POs originating from the ERP’s purchasing module.
In today’s world, Forrester estimates over 40% of all US business-to-business (B2B) activity and 20% of global
3
B2B sales are conducted through electronic channels, or eCommerce. See the “Vendor Landscape: B2B Business
Networks” Forrester report.
Interestingly, Microsoft Dynamics, the second-largest SaaS CRM vendor, does not have a similar collection of SaaS
4
CLM partners.
Because services procurement products and VMS tools are generally priced as a percentage of spend purchased
5
through the products, it is feasible to calculate the revenue split between these two categories of services.
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Why Read This Report Key Takeaways

Vendor Landscape: ePurchasing Software, 2015 To 2016

Table Of Contents Notes & Resources

Related Research Documents

Market Overview: Contract Life-Cycle

Vendor Landscape: B2B Business Networks

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA

2015 To 2016 ePurchasing Trends: Cloud And New Entrants

Global revenues by enterprise process application

Note: Numbers have been rounded.

2-1 A strong US dollar will reduce dollar-denominated growth in 2015

US dollar and constant currency growth rates in global ePurchasing market

Vendor revenues by ePurchasing product

Percent change 2011 2012 2013 2014 2015* 2016*

Services procurement 26% 18% 15% 19% 9% 21%

Supplier network 16% 15% 10% 27% 14% 16%

ePurchasing vendor revenues by type of revenue

$4,445 $1,135 $3,209

$882 $933 $980 $946 $984

$809 $829 $846 $819 $753 $759

Percentage change 2011 2012 2013 2014 2015* 2016*

License 15% 2% 2% -3% -8% 1%

Maintenance 15% 6% 6% 5% -3% 4%

Subscriptions 16% 17% 13% 21% 11% 16%

Services 10% 16% 1% 0% 9% 8%

Total ePurchasing 14% 12% 7% 10% 5% 11%

2-4 EMEA will grow by 3%; Asia Pacific will grow by 2%

ePurchasing vendor revenues by geography

9% Total ePurchasing $2,348

$512 $523 $590 $604 $654

Americas 13% 14% 6% 8% 8% 11%

Total ePurchasing 14% 12% 7% 10% 5% 11%

2. The ePurchasing Market Will Remain Fragmented

FIGURE 3 Who’s Who In the ePurchasing Software Market

3-1 More than 20 vendors offer ePurchasing suites of varying breadth

FIGURE 3 Who’s Who In the ePurchasing Software Market (Cont.)

3-2 The 12 largest vendors by product, measured by 2015 product revenues

10 Verian I-Faber Gimmal Spend360 Verian ZeroChaos HICX

12 Pool4Tool GEP CobbleStone Pool4Tool Oracle Esize Oracle

3. New Entrants And Acquisitions Will Reshape The Vendor Landscape

100% 100% 100% 100% 100%

12% 13% 13%

20% 19% 17% 17% 17%

2011 2012 2013 2014 2015*

$922 $954 $953 $1,035 $1,070

2011 2012 2013 2014 2015*

How Each ePurchasing Product Will Perform In 2015 And 2016

4. In eProcurement, The Shift From On-Premises To SaaS Takes Off

FIGURE 5 SaaS Adoption Accelerates In eProcurement

eProcurement software revenues by type of vendor

ERP vendors’ $1,435

$137 $138 $118 $130 $142 $158

5. Adoption Of AP eInvoicing Starts To Drive Adoption Of AR eInvoicing

FIGURE 6 SaaS Rules In AP eInvoicing Software

AP eInvoicing software revenues by type of vendor

eInvoicing specialists 100% 100% 100% 100% 100% 100%

15% 16% 16% 18% 19%

12% 11% 10% 10% 9% 9%

2011 2012 2013 2014 2015* 2016*

6. CLM’s Strong Growth And Shift To SaaS Attract New Entrants

FIGURE 7 The SaaS Revolution In CLM Rolls On