From YHOO news; Sun Micro, Netscape offer Internet purchasing software
PALO ALTO, Calif., Sept 12 (Reuters) - Sun Microsystems Inc. (Nasdaq:SUNW - news) and Netscape will Monday announce their latest move as an alliance, bringing to market software that enables companies buy supplies over the Internet.
Called Internet procurement, it's one of the fastest-growing areas of electronic commerce and, analysts said it is yet another sign that the two companies are turning up the heat with their joint alliance.
Netscape, now owned by No. 1 online service provider America Online Inc. (NYSE:AOL - news), has teamed up with computer maker Sun to sell e-commerce software and solutions to companies as they seek to become Internet businesses. However, the alliance faces plenty of competition, even in the market for Internet procurement.
Oracle Corp. (Nasdaq:ORCL - news), the second-largest independent software company in the world, has moved into that market aggressively. In addition, Ariba Inc. (Nasdaq:ARBA - news) and Commerce One Inc. (Nasdaq:CMRC - news) are already established competitors in the field. Both companies recently held successful initial public offerings.
''Often procurement is (a company's) first step into electronic commerce,'' said Peter MacDonald, group product manager for the Internet procurement products for the alliance.
According to a recent A.T. Kearney study cited by MacDonald, all U.S. publicly traded companies could save $444 billion annually if they moved to buying the supplies and equipment they needed via the Internet rather than through traditional, labor-intensive, paper-based methods.
The alliance between Palo Alto, Calif.-based Sun and Netscape said that the products are available now and the price typically starts at $600,000 and rises from there.
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