Oracle and Boeing in discussions

Oracle and Boeing are reportedly in negotiations about building an online marketplace for the global aerospace sector.

The move follows Oracle's opening of its Exchange online marketplace last month to link business partners, customers and suppliers.

Ford, for one, plans to use the Exchange as the backbone for its new AutoXchange, an online auto supply chain network that is scheduled to be up and running next year.

The new business is intended to make it easier and less expensive for Ford to obtain the parts and services needed to build cars by using the Internet to bring interested parties together.

Dwight Davis, a software analyst at Summit Strategies, said: "There have been two high profile cases in the automotive areas, which are the first big corporate wins for this phenomena of an electronic marketplace. Oracle is trying to strike one on one deals with large corporations to have their own private marketplaces."

He continued: "Following GM and Ford, Boeing would be a natural candidate, although I have not heard about this latest pairing. It is heavily into military aerospace and has a massive number of suppliers and contractors."

"It would help Boeing to automate and facilitate inventory, track down the order status and those kinds of things. The online database would simplify the operational headaches every day," he added.