Oracle Corp. (NASDAQ: ORCL) has followed the advance of Ariba and Commerce One in attached its B2B approaching to a ample banking institution. Citigroup (NYSE: C) has agreed to use Oracle's technology for its centralized accretion and to bazaar Oracle's barter casework common through a co-branded web site.
Citibank has the abeyant to accompany the bulletin about the affiliation to 100 actor customers. The bulletin will absolutely acrylic a account in which a aggregation can participate in a all-around barter that will save money for buyers and abate costs of auction for vendors, and accommodate all parties with one bang admission to loans, curve of credit, factoring, and all the added banking casework of the all-around economy.
The account brought a acceptable bang to Oracle's allotment price, which rose 13 percent. The banal had been abatement due to apropos about approaching database revenues and the acceleration with which barter can catechumen to new Oracle applications.
A move of this attributes was assured for both companies. Ariba has affiliated itself to Amex (see IBM is Not Enough; Ariba Announces Able Affiliation with Amex) and Commerce One has cord ties to a amount of able bounded banking institutions, including Canada's TD Coffer Banking Group and Latin America's Grupo Financiero Banamex-Accival ("Banacci") (see Commerce One Goes High, Wide and PeopleSoft). Offering banking casework through a B2B barter is about accustomed as all-important for both partners; it is not about sufficient, accustomed that Concur's arrange with Amex (see Concur Aims To Be Single Point Of (Purchasing) Access) did not anticipate it from bottomward its e-procurement initiatives rather dramatically.
Oracle acutely believes that it accept to accept a section of the B2B barter world, and cipher is arguing. In beneath than eighteen months the administration of B2B exchanges has about absolutely afflicted from enabling the acquirement of aberrant food to acceptable basic apparatus in chip accumulation and administration chains. That aforementioned progression will acceptable be replicated at the akin of alone companies, alone exchanges, and the industry as a whole. For Oracle, that makes a customer's accommodation to participate in an barter the aperture to advertise them, over time, a abounding apartment of back-end software products. For Citigroup it is accessible that such exchanges accept to be anointed by a all-inclusive breeze of cash, and why shouldn't the coffer get its fair allotment of the fees?
It is harder to anticipate of a move like this, so acutely accountable for both sides, as accepting a above aftereffect on the absolute bazaar - which in any case is not about complete abundant to see the effects. It does coalesce Oracle's affirmation to a arch position in e-procurement, and with Commerce One and Ariba administration those advance ceremoniousness it isn't simple to see area a amateur ability appear from - GE's All-around eXchange Casework is one adversary account watching, but they don't yet appearance signs of acceptable a head-to-head confrontation.
On the added hand, there are abounding added huge banks than there are e-procurement software companies of any size, even if a generalist like Oracle is included. Those banking giants are not traveling to sit idly by while Amex, Citigroup and a few others carve up the world. With about no added software baton to accomplice with - and if there were, the antagonism for its favors would be absolutely acute - we will not be afraid to see a ample bank, or a bunch of aboriginal and second-tier banks, attack to abound an e-procurement behemothic from an absolute weaker aggregation with a believable clue record. Clarus Corp. (NASDAQ: CLRS) comes to apperception as an agreeable target.
Citibank has the abeyant to accompany the bulletin about the affiliation to 100 actor customers. The bulletin will absolutely acrylic a account in which a aggregation can participate in a all-around barter that will save money for buyers and abate costs of auction for vendors, and accommodate all parties with one bang admission to loans, curve of credit, factoring, and all the added banking casework of the all-around economy.
The account brought a acceptable bang to Oracle's allotment price, which rose 13 percent. The banal had been abatement due to apropos about approaching database revenues and the acceleration with which barter can catechumen to new Oracle applications.
A move of this attributes was assured for both companies. Ariba has affiliated itself to Amex (see IBM is Not Enough; Ariba Announces Able Affiliation with Amex) and Commerce One has cord ties to a amount of able bounded banking institutions, including Canada's TD Coffer Banking Group and Latin America's Grupo Financiero Banamex-Accival ("Banacci") (see Commerce One Goes High, Wide and PeopleSoft). Offering banking casework through a B2B barter is about accustomed as all-important for both partners; it is not about sufficient, accustomed that Concur's arrange with Amex (see Concur Aims To Be Single Point Of (Purchasing) Access) did not anticipate it from bottomward its e-procurement initiatives rather dramatically.
Oracle acutely believes that it accept to accept a section of the B2B barter world, and cipher is arguing. In beneath than eighteen months the administration of B2B exchanges has about absolutely afflicted from enabling the acquirement of aberrant food to acceptable basic apparatus in chip accumulation and administration chains. That aforementioned progression will acceptable be replicated at the akin of alone companies, alone exchanges, and the industry as a whole. For Oracle, that makes a customer's accommodation to participate in an barter the aperture to advertise them, over time, a abounding apartment of back-end software products. For Citigroup it is accessible that such exchanges accept to be anointed by a all-inclusive breeze of cash, and why shouldn't the coffer get its fair allotment of the fees?
It is harder to anticipate of a move like this, so acutely accountable for both sides, as accepting a above aftereffect on the absolute bazaar - which in any case is not about complete abundant to see the effects. It does coalesce Oracle's affirmation to a arch position in e-procurement, and with Commerce One and Ariba administration those advance ceremoniousness it isn't simple to see area a amateur ability appear from - GE's All-around eXchange Casework is one adversary account watching, but they don't yet appearance signs of acceptable a head-to-head confrontation.
On the added hand, there are abounding added huge banks than there are e-procurement software companies of any size, even if a generalist like Oracle is included. Those banking giants are not traveling to sit idly by while Amex, Citigroup and a few others carve up the world. With about no added software baton to accomplice with - and if there were, the antagonism for its favors would be absolutely acute - we will not be afraid to see a ample bank, or a bunch of aboriginal and second-tier banks, attack to abound an e-procurement behemothic from an absolute weaker aggregation with a believable clue record. Clarus Corp. (NASDAQ: CLRS) comes to apperception as an agreeable target.
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