That's the bigger shocker. While analysts say the economic slowdown certainly played a role in the missed numbers for both companies, they say the problems represent more than a one-quarter phenomenon.
Customers are savvy.
They ask these questions. As a software company you don't want to face those questions from a majority of your customers. You want to anticipate those questions and make the right acquisitions that will help you answer those questions. Earlier this month, Mountain View-based Ariba warned that its results would fall far short of explanations. Earnings for the quarter, which analysts expected to be 5 cents a share, are now expected to be a loss of about 20 cents per share excluding extraordinary items.