When it comes to expense management software, SAP’s Concur is king. Most businesses need a tool to track and reimburse employee expenses, and Concur is the most trusted in the space. One just needs to look at some real-user reviews on G2 Crowd to see why the product is so well-liked.
Beyond that, it’s also the most used product, according to G2 data. In our most recent Expense Management Grid℠ Report, Concur led the pack with a Market Presence score of 85 (out of 100, based on a variety of factors including company size, social media presence, reviews and more). The second-highest Market Presence score came from NetSuite OpenAir at 75, and the third-highest, Unit4 Travel & Expenses, was 30 points behind Concur at 55.
As is the case any time a product is sits alone at the top, competitors gun for the throne. That is exactly what K1 Investment Management seems to be doing as it invests over $125 million to facilitate the merger of four expense management products.
The $125 million transaction combines expense management products Certify, Nexonia, ExpenseWatch and Tallie. K1 Investment Management claims that the deal creates the largest company in the expense management software space behind Concur, and will serve 7,500 customers from the enterprise, mid-market and small-business markets.
The combined business’ near-term priorities are “increased investment in product capabilities, expansion of geographic reach and growth of a team of subject matter experts.” The prospect of overtaking Concur to become the premier expense management software is no small matter; International Data Corporation, a Chinese market research firm, predicts the market for travel and expense management software will be a $2.46 billion by 2020.
What Does the Data Say?
To get an idea of how the K1-backed business will fare, let’s take a look at G2’s data from the Spring 2017 Expense Management Grid℠ report.
Note: Neither Tallie nor ExpenseWatch have enough G2 Crowd review data to draw consequential conclusions, so we’ll just look at Concur, Certify and Nexonia.
Based on this data, it seems that K1’s new venture will be able to compete with Concur from a quality standpoint. The question that remains is: Will the new expense management tool be able to provide similar user satisfaction as the individual products did pre-merger, while scaling to compete in market presence with Concur? Time will tell, and the struggle for supremacy in the expense management space is certainly worth monitoring.