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Commerce One and SAP pact bears fruit

by John Geralds in Silicon Valley

19 Sep 2000

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Commerce One and SAP have begun shipping their combined e-marketplace and enterprise resource planning (ERP) software following the German giant's $250m investment into the ecommerce infrastructure supplier.

The offering includes the MarketSet supply chain application and Enterprise Buyer which is available in two versions: desktop and professional. The desktop edition allows businesses to buy indirect goods, such as office equipment, via web-based catalogues, while the professional release covers the procurement of both direct - raw materials for the manufacturing process - and indirect goods. Professional integrates with business processes such as parts and supplies, materials management, and contract buying.

The products are the fruits of a much-anticipated alliance between the two companies that was announced in July when SAP pumped $250m into Commerce One. Analysts view the partnership as SAP's most aggressive attempt to reposition itself as an internet-centric software maker.

Josh Greenbaum, an analyst with Enterprise Applications Consulting, said being able to ship an architecturally unified product within several months of conception is impressive. "With this development, the partnership between SAP and Commerce One has moved from theory to reality," he said.

Commerce One also introduced its next-generation auction services, Auction Services 4.0, aimed at enabling complex negotiations for direct and indirect procurement and liquidation processes. It will be available in the fourth quarter from Commerce One and as part of MarketSet and SAPMarkets. The latest version will include multi-variable Bidding, multi-level bidding, request for proposals and request for quotes.

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