(NASDAQ: DELL) will create a B2B marketplace for small and medium customers
using technology from Ariba (NASDAQ: ARBA). The market place will bring
Dell's suppliers and customers together.
will also preinstall Ariba software on Dell PowerEdge servers, for both
individual companies that host their own Ariba purchasing solution and
for ASP's. Dell will assist in consulting and implementation for these
customers, and Dell and Ariba will engage in joint sales efforts.
will become the basis for Dell's own worldwide procurement network, and
Dell will become a major hardware supplier to Ariba. Finally, Dell will
take an equity interest in Ariba.
new marketplace will allow customers to buy a wider set of products, and
will create additional markets for Dell's suppliers. Unlike Dell's GoToBuy
site, which places Dell between the two parties of the transaction, the
new marketplace will place buyer and seller in direct contact. There will
be future announcements of enhanced services in this marketplace.
announcement puts special pressure on Compaq, which is struggling to (re)create
its own direct channel.
Users should be more interested in the software that they will use, whether
installed or through an ASP, than in the precise membership of any particular
users who desire to procure equipment from Dell will certainly find this
announcement attractive, Dell equipment is available in other ways.If
either Ariba's software or that of another vendor who serves as an on-ramp
to the Ariba Network does not suit you for reasons of function or cost,
we think that you should stick with your overall evaluation when choosing
a procurement solution.