It was probably one of the shortest marriages in corporate history when procurement vendor Ariba announced the resignation of its 90-day Chief Executive Officer (CEO) Larry Mueller.
The news came just as the beleaguered procurement vendor follows on the heels of a strategy realignment and internal reorganization earlier this year.
Former CEO Keith Krach is filling Mueller’s position temporarily, and the immediate effect on existing customers is expected to be negligible for now.
"The hit will come harder from prospects and up-sell opportunities. Ariba has already reported an approximate 30% drop in the average deal size, attributed to closer board scrutiny over software deals, and trend looks set to continue," reports Beth Barling of AMR Research.
Ariba is not elaborating on the reasons for Mueller’s departure, turning its attention instead to its latest earnings results. Although the company reported a loss of $26.1M for the quarter, it was slightly less than expected, with a quarterly revenue of $85.3M, up 6% on the previous year’s quarter.
Barling adds that "with a strong cash position, deeper penetration into key verticals, and a deferred revenue of $190M", Ariba can afford to remain stoic for the time being.
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