(Nasdaq: CMRC), the number two vendor of electronic procurement solutions with
6.5 percent of the market according to Dataquest (See TEC's News Analysis article:
Reaches Out To The Little Guy September 28th, 1999) has entered into a partnership
with Cable & Wireless Optus (formerly Optus Communications) to establish a trading
portal in the Australian region for business to business commerce. Cable & Wireless
Optus has also licensed Commerce One's software for its own internal procurement
function. Cable & Wireless Optus is the second largest telecom carrier in Australia.
At the beginning
of September Commerce One announced a similar partnership with Singapore Telecom
Group to supply software for SingTel's new venture (with National Computer Systems)
SESAMi.NET, and has an existing partnership in place with Nippon Telephone &
Telegraph. These moves give Commerce One tremendous influence in the Pacific
at the earliest stages of the electronic procurement boom/growth curve. Together
with its activities in Europe, including a partnership with British Telecom,
Commerce One is making a strong attempt to capture the world market for E-procurement
solutions. However Commerce One is not ignoring the U.S. At the beginning of
September it announced a marketing partnership with Compaq Computer Corporation
(NYSE: CPQ) in which Commerce One will work with Compaq to deliver procurement
solutions, and Compaq's Enterprise Solutions and Services Group will serve as
Commerce One's global sales and service channel for Commerce One.
Winners / Losers
that Commerce One will establish itself as one of the top two E-procurement
players in the Pacific, and will have a similar dominant presence in Europe.
As a result it will be positioned to increase its market share in the U.S. and
Canada as well. In any case Ariba, Commerce One's biggest competitor, will feel
pressure to make a major international move, or it will fall behind Commere
One in the international E-procurement space.Although Ariba is currently the
leader in their battle, if Commerce One, pushes Ariba into fighting a two-front
war, which we believe is likely, it might have a chance to change the balance
of power between these two leading competitors, possibly pulling within 10 percent
of Ariba in global market share in the next 3-5 years..