Peregrine Hatches an "e-"

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Event Summary

Peregrine Software, up to now a specialist in software for infrastructure management, has moved into the eCommerce arena with its first offering. Their Get.It solution will allow employees to acquire assets by buying, leasing or taking from existing stock.

Market Impact

Peregrine seems to be avoiding the crowded market for consumables procurement to specialize on assets, which is close to their traditional areas of expertise. Arguing that the consumables that are made available by traditional E-procurement vendors account for only five percent of the good purchased by business, Peregrine is attacking the rest of the market with an application that allows organizations to make their buying decisions based on life cycle costs, which are evaluated by its AssetCenter applications. Among other suppliers, Peregrine has partnered with Commerce One, which is likely to ensure that Peregrine's customers can buy consumables as well as the more complicated assets that are the focus of the product.

Peregrine's current customers are almost sure to adopt the Get.It product for their E-purchasing application, thereby cutting out the leaders in the space (except for Commerce One). It does not seem likely at this point, though, that the majority of companies thinking of entering into E-procurement will have a need that is much more easily served by the Aribas of the world.

User Recommendations

The product is targeted to companies that are particularly interested in electronic procurement of assets. For these companies Peregrine's new product may have real value. A detained feature analysis is of course required before moving forward, and this should certainly include the extent to which consumables (MRO) purchasing is handled appropriately for their needs. Note, though, that companies will be deploying an increasing number of self-service applications - not just purchasing, but also expense reporting, human resources, travel arrangements and attendance tracking - that integrate with the same back-end that handles consumable purchasing. A company that needs to bring the purchasing of both assets and consumables to the employee desktop may be forced to choose between having a single system like Peregrine's handle all their purchasing, or splitting their purchasing in order to take advantage of the unification of other self-service application suites. Peregrine must be thinking about a solution, such as partnering with a self-service product suite company or - with its $3.8 billion market capitalization - simply buying one of the smaller companies in that field. Given that Get.It is newly released, we'd expect the play-or-purchase decision to be made within four to nine months.

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