An exploration of what the future holds for SAP Ariba beyond 2022 as SAP plans to move to a fully integrated SAP Procurement module

I sometimes get told that I am one of those geeky people who can tend to get too invested in their job. And I guess many of you may be able to empathise with me? We get sucked in, and always want to know more about the who, what, when, where and why within our sector! In my role I feel fortunate to be in a position where I can liaise day-in day-out with all of you experts across SAP Ariba, Procurement, Supply Chain and Cloud Strategy.

I feel it is important for “specialist recruiters” to have an invested interest in what is going on within their industry of focus, beyond “just what companies are hiring and what consultants are available”. A wider industry knowledge ultimately makes us better informed, and in turn this means we are of greater use to adding tangible value on key recruitment campaigns. Conversely, when I have a question, I know that there are plenty of you out there within my network that I can reach out to and discuss topics that I may want specific clarity on.

So imagine my surprise when it was mentioned to me recently that SAP has no long-term plans for SAP Ariba on its future P2P roadmap! As somebody who has built a successful recruitment USP throughout EMEA based on a core devotion to SAP Ariba I can’t say there wasn’t an initial concern.

The conversations I had suggested that SAP have plans to retire SAP Ariba in respect to its purchasing and invoicing solution, phasing these out in favour of a new SAP procurement hub. My initial thoughts leaned to what exactly this would mean for those who currently work across the SAP P2P space, for companies currently running on SAP Ariba downstream modules and for all who work in some way, shape or form within SAP procurement teams and projects.

Naturally I put the call out to my network to find out what is going on here. Whilst some conversations failed to shed any light or knowledge on what the future for SAP Ariba may look like, some discussions helped me to form a clear picture as to what the vision for the SAP procurement landscape may be.

In a nutshell… piecing together all the things we have heard so far we can safely assume that SAP Ariba will go through a transformation (platform, user interface, integration) over the next few years but will still exist as a separate entity for non SAP clients. For the SAP clients, it will become part of the core platform. And it seems one thing will absolutely happen, the name itself will be retired – but… thankfully… our jobs will not be!

So after this transformation we are likely to hear less of the SAP Ariba solution, and more of SAP Procurement solution when it comes to SAP S/4 HANA. Undoubtedly this will be a big milestone in the lifeline of SAP Ariba. For the first time since Ariba was conceptualised back in 1996, it will lose its name. But in the process it will gain wider acceptance into the fold of the full SAP family. No longer seen as an “add-on” like the step-brother of the main SAP collective; future business SAP S/4 HANA implementations may talk of the need to select “SAP Procurement” as an essential solution to consider.

With SAP Ariba being swallowed by SAP, the two will inter-twine to the point that they are clearly no longer two separate entities. The rebranding as SAP Procurement will offer a solution to clients that under the bonnet has basically the same functionality as Ariba, but built on SAP technology supported by HANA. This solution will provide users with the same UI for SAP and Ariba.

Not without its challenges: As we stand, SAP Ariba is credited by Gartner as a leader in Procure to Pay solutions (as a whole), but its also widely accepted that for specific focus areas, there are better solutions across siloed areas. Consider the size of SAP… its huge in comparison to competitors such as Coupa meaning it simply cannot move at the same pace. This is in part the reason SAP acquired Ariba back in 2012 (along with a healthy share of the P2P market at the same time). The risk of SAP being slower to react is that there are individual solutions who can outperform in specific areas, e.g., Coupa for p2p, Docusign for contracts management, etc; however, nothing can cover the full spectrum like SAP Ariba can. The end customers want simplicity, they want one unified tool, and they want one harmonisation. Enter SAP Procurement.

After getting past the initial shock, I actually think this could be a good move for SAP. I like the vision for  harmonisation and I can see the long term advantages. In the past SAP Ariba have sold the solution exceptionally well, but perhaps overpromised on occasion when it comes to delivery and support. The key here is to ensure this is done properly. They need to go back to their roots and increase confidence amongst end users in order to continue thwarting off the competition from the smaller cloud based solutions… the rise of the new kids on the block.

If you want to discuss anything in regards to the future of SAP Ariba in relation to your own career then I welcome the opportunity to set up a call. I also welcome an open discussion in the comments section below. No doubt there will be plenty I’ve missed within this article, and as a community I’m sure there are plenty more of you out there like me who would be very keen to learn more from those of you in the know as to what we can expect in the coming years.

Tyler Watts (SAP Ariba Recruiting Manager, bluewaveSELECT) – [email protected] - +44(0)1423559559