Apparently Commerce One has their sights on the transaction model too....from the iionline article...
>>Just to provide some perspective on the magnitude of this deal, GM spends over $80 billion
annually on purchasing, while its 30,000 suppliers spend over $500 billion! Representatives
of GM and Commerce One were vague about their revenue models, but A. Alan Turfe,
Executive Director of GM TradeXchange, noted ?we suspect [somewhere] between
0.25%-0.50% on the transaction would be a way to generate revenues.? Considering that GM
TradeXchange is expected to reduce the cost of a purchase transaction to $10 from as
much as $50-$350, we think suppliers will gladly pay such a fee.
Food for thought: .25% of $500 billion is $1.25 billion. If Commerce One were to get just 5%
of that .25% transaction fee, it would amount to roughly $60 million, approximately equal to
the amount of revenue the street expects Commerce One to generate during the year 2000.
We should emphasize that no definitive agreement has yet been reached, and thus
attempting to make projections is purely speculative. Furthermore, while substantial
transactions fees could be generated, there is no agreement on if or how the two parties
would divide the spoils, nor when they would flow through to the top line. << |
