Commerce One Adds Banks to Its List of Partners
Kutler, Jeffrey, American Banker
Commerce One Inc., an electronic commerce company distinguished by an unusually long list of partners and allies, announced deals last week with banks north and south of the United States.
Toronto-Dominion Bank said it would rely on Commerce One technology for what is billed as the first business-to-business Internet trading portal in Canada.
Grupo Financiero Banamex-Accival, the largest financial company in Mexico and the parent of Banamex, agreed in principle to form a joint venture with Commerce One to operate an electronic business-to-business marketplace for Latin America.
Commerce One did not stop there. At the end of the week it announced what it called a "strategic distributor partnership" with eMediate, a corporate electronic procurement consortium in South Africa. That organization will play multiple roles, including portal operator and sole Commerce One distributor in that country, working to extend geographically the latter's relationships with Compaq Computer Corp., PeopleSoft Inc., Microsoft Corp., and PricewaterhouseCoopers.
Such efforts are solidifying Walnut Creek, Calif.-based Commerce One's standing as an international force on the rapidly expanding "B-to-B" side of e-commerce. Many industry experts are urging that attention be focused more on this area than on "business-to-consumer" opportunities. In a report released Monday, Deloitte Consulting said that projected B-to-B revenues of $1.3 trillion in 2003 would be six times those in consumer on-line activity.
Boston Consulting Group previewed a study Tuesday in which it concludes that the B-to-B e-commerce market is far larger than commonly estimated.
"Businesses that provide the hard and soft infrastructure to implement these new platforms will grow rapidly as markets proliferate," said Deloitte Consulting principal Cathy Benko. "Those who learn to use this new infrastructure effectively will most certainly gain a decisive competitive advantage in the next century."
In another sign of how rapidly this market is going mainstream and how high the stakes are perceived to be, the "buy side" systems specialist Ariba Inc. of Mountain View, Calif., reached a definitive agreement last week to acquire Tradex Technologies Inc. for $1.86 billion in stock. With the Tradex on-line exchange system, Ariba is reaching from the buy side for "leadership across business-to-business e-commerce, period," said Ariba chairman and chief executive officer Keith Krach.
This week Signio Inc., a payment-platform company that has alliances with Commerce One and others in both business-to-business and business-to-consumer commerce, agreed to be acquired by the digital certificate company Verisign Inc. for $700 million-plus in stock.
Commerce One was founded in 1994, has operated under its current name since 1997, and had early backing from SAP of Germany. Now publicly held, it made major leaps this year with its application of the XML, or eXtensible Markup Language, compatibility with Microsoft's BizTalk and various other e-commerce frameworks and standards, and a long and growing list of customers and strategic allies.
Commerce One's main offering consists of BuySite for internal corporate procurement functions and MarketSite for interactions with suppliers, ranging from order placement to payments.
Both of Commerce One's new banking partners are …
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Publication information: Article title: Commerce One Adds Banks to Its List of Partners. Contributors: Kutler, Jeffrey - Author. Magazine title: American Banker. Volume: 164. Issue: 244 Publication date: December 22, 1999. Page number: 7. © 2009 SourceMedia, Inc. COPYRIGHT 1999 Gale Group.
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