As I have before, I have added my commentary on market caps and multiples of revenue to the 2016 Gartner Magic Quadrant for Procure-to-Pay Suites:
The most interesting aspect of the 2016 Gartner Magic Quadrant for Procure-to-Pay Suites (I keep repeating that in the hopes that it will make Gartner less mad) is that the criteria for inclusion have been tightened to include:
- A revenue minimum
- A minimum number of truly enterprise clients who are live with both procurement and e-invoicing
- A minimum number of number of new enterprise clients signed in 2015
- A minimum percentage of revenue generated by clients in a second continent different from a vendor’s home region and
- a few other conditions
I’m leaving out the details of the criteria to, you guessed it, avoid pissing off Gartner further.
The net effect of these changes are to:
- drop Oracle E-Business Suite and Oracle Peoplesoft from the 2016 Gartner Magic Quadrant for Procure-to-Pay Suites. Thus confirming what I have suspected about Oracle and Peoplesoft in this space for the last 10 years–they just do not care.
- drop Sciquest, which cannot make Accel-KKR very happy
- put the spotlight on some of the remaining independent companies
- help Coupa
Now that I am no longer in the game of having my application evaluated by analysts such as Gartner, I can say that this report appears to be well done and deserves to be read in its entirety–rather than just looking at the picture above. And you can guess partly why I am saying that! Have a great weekend!