Ariba is a leading provider of business-to-business e-procurement software and services. It offers spend management solutions that help companies manage procurement, sourcing, invoice processing, and supplier management. Ariba has grown through acquisitions of companies that provide complementary services and now has a large network of buyers and suppliers. It generates revenue from software subscriptions and transaction fees.

1. www.ariba.com

2. What is ARIBA? B2B E-Commerce A leading B2B E-procurement software platform and software provider E-Procurement Net Marketplace

3. E-procurement Markets

4. Ariba’s E-Procurement Net Marketplace

5. ARIBA Product & Service

6. ARIBA Product & Service Spend visibility Solution Ariba Analysis Ariba Data Enrichment Ariba Spend visibility Sourcing Solution Ariba Sourcing Ariba Supplier Performance Management Ariba Category Management Ariba Sourcing On-Demand

7. ARIBA Product & Service Contract management Ariba buyer application Ariba Category Procurement Ariba Travel and Expense Ariba Procure-To-Pay Procurement and Expense Ariba Contract Workbench Ariba Contract Compliance Ariba Contract management

8. ARIBA Product & Service Invoice and payment Ariba Invoice Presentment Payment Supplier management Ariba Supplier Connectivity Ariba Supplier Network

9. SOLUTION EXAMPLE Provided necessary information for renegotiation of volume discount agreements Consolidated suppliers using Ariba buyer Supplier Consolidation Considerable time savings and a more than 60% reduction in costs of processing purchase requisitions Automated and streamlined its procurement processes Procurement Processes Benefit Solution Process

10. ARIBA – Customer’s Industry Automotive Banking Business Services /Consulting CPG Cement Chemicals Computer Software & Services Construction Education Energy High Tech Construction Materials Distribution/Wholesale Engineering, Scientific & CAD/CAM Software Federal Government Finance/Accounting Food, Beverage & Tobacco Health Care Services Transaction, Credit & Collections Technology Manufacturer/Developer Leisure Manufacturing Media Pharmaceutical Retail Telecommunications Consumer Products Transportation

11. ARIBA’s Vision “ To become the leading provider of Spend Management Solutions, which are Software and Service to help manage what they want”

12. Business Model Originally Web-based Licensing and Maintenance Fee For buyer Reduction in Procurement cost, Supply Cost, Error Faster acquisition cycle For Supplier Reduction in selling cost Faster payment Access to purchasing power of large firm Built Ariba Supplier Network Charge fee based on transaction value among trading partner Cisco e-Procurement Shift to Web-based On-Demand Software Solution Subscription and maintenance Fee

13. Value Proposition Spend Management Solution , it delivers; Speed Sustainability Coverage Flexibility

14. Strategic – Business Strategies Related-Business Acquisition Alliente : A provider of business process outsourcing FreeMarkets : One of the largest operator of independent Net Marketplace or Exchanges Softface : Expertise in spending analysis, catalogs and contract management Competitor Acquisition Procurri : Reach “Middle Market”

15. Strategic – Competition Direct (Pure Web-based eProcurement) Emptoris Ketera Technologies Verticalnet Frictionless Commerce Commerce One Large ERP company (Business Software Solution) SAP Oracle

16. Competitive advantage Top challenges Actual & planned users Suppliers enabled Transaction volume Spend under management Requisition-to-PO cycle cost Requisition-to-PO cycle time Provider satisfaction Software functionality Reference © 2006 AberdeenGroup, Inc. Publish December 22, 2006

17. Strategic – Alliance IBM and i2Technologies Develop solution for specific customer Epylon To develop an integrated platform specifically designed to meet the needs of public sector procurement. ClearCross To provide total landed cost calculation services on the Ariba B2B Commerce Platform.

18. Strategic – Alliance Business Process Outsourcing Partners Reseller Partners

19. Strategic – Alliance Consulting and Solution Provider Partners

20. Strategic – Alliance Technology and Product Partners

21. Strategic – Technology ARIBA cXML-PunchOut Allow a buyer to access a supplier's Web site from within the buyer's own procurement application For Example, Cisco ePurcurement to enable Cisco buyer to order Cisco products via buyer’s Ariba application

22. Strategic – Technology AribaWeb the Open Source component-based web application development framework for creating rich, AJAX-enabled applications with the absolute minimum of code

23. Strategic – Social and legal Challenges Sued by Share Holder in FreeMarkets acquisition Patent infringement ePlus inc. Vs Ariba Ariba Buyer Ariba Marketplace Ariba Category Procurement Sky Vs Ariba Emptoris Vs Ariba

24. Financial 2000-2010 stock price

25. Financial 2010 stock price

26. Financial Period Ending 30-Sep-09 30-Sep-08 30-Sep-07 Total Revenue 338,972 328,060 301,667 Cost of revenue 128,922 148,534 161,398 Gross Profit (A) 210,050 179,526 140,269 Operating Expense R&D 43,483 52,270 51,159 Selling General & Administrative 139,501 159,753 133,684 Non Recurring 10,837 15,442 (17,758) Other 755 739 525 Total Operating Expense (B) 194,576 228,204 167,610 Operating Income (A-B) 15,474 (48,678) (27,341) Income from Continuing Operations Total Other income/ Expense Net - 8,359 14,301 Earning Before interest and Taxes 9,419 (40,319) (13,040) Interest Expense - - - Income before Tax 9,419 (40,319) (13,040) Income Tax Expense 1,226 743 1,937 Net Income from continuing Ops 8193 (41,062) (14,977) Net Income 8193 (41,062) (14,977)

27. Future Prospects Expansion Consulting Service More acquisition Strong Competition from software firm such as SAP and Oracle Acquisition target for larger technology firm

28. Suggestion Long Tail Expand in “Middle to Lower market” Software customization B2C to become personal management Global Firm Support for all foreign currency Expand to Asia-Pacific supplier and buyer Cover all business industries