One of the major European marketplace players, but a business that long ago seemed to lose its way, CC-Hubwoo has just announced its Q4 results for 2007.
They show that, on a target of €44m and despite two acquisitions within the year, the company recorded revenues of just under €33m to deliver a revenue increase of just 1.8% on the previous year. This disastrous shortfall in anticipated revenue growth seems to me to come as a result of the company’s hybrid approach to the market. An approach that is neither one thing nor another.
The choice facing mid tier and large organisations that are looking to deliver sourcing and/or purchase to pay into their businesses lies principally between taking an ERP-centric approach, or going on-demand. CC-Hubwoo pitches to those considering the latter, but since much of the company’s technology is based on SAP – who are also a key shareholder – their credibility as an independent, ERP-agnostic provider is non-existent.
If you’re going to select an on-demand system, which is typically marketed as the antidote to the long delivery cycles, high cost, and inflexibility of the ERP equivalent, why on earth would you select one that is in the pocket of SAP?
It seems to be a question for which CC-Hubwoo hasn’t been able to provide an answer.
