added to manu today. manu teams with cisco and microsoft. manu is now the leader. may have to sell some stock to buy more.
Manugistics Teams with Microsoft, KPMG Consulting
NEW YORK (Reuters) - Manugistics Inc. (NasdaqNM:MANU - news), which provides software that manages companies' inventory and buying systems, said on Tuesday it formed an alliance with software giant Microsoft Corp. (NasdaqNM:MSFT - news) and KPMG Consulting (NasdaqNM:KCIN - news), one of the world's largest technology consulting firms, to target the booming market for online exchanges that link buyers and sellers.
Manugistics said it signed a joint sales, marketing and development deal that will see its supply chain management software integrated with Microsoft's .Net software for server computers. KPMG will provide integration and consulting services.
The companies made the announcement at Manugistics' Strategy Summit in San Francisco.
The move highlights a trend in the business-to-business software market.
While the first generation of online exchanges focused on indirect procurement, or the buying and selling of finished goods such as office products and services, over the Web, the second generation is focused on software that automates direct procurement, or the buying and selling of raw materials.
Analysts say that inefficiencies in procuring raw materials cost manufacturers billions of dollars a year. But they say bringing the systems on line, and enabling buyers and suppliers to share inventory, demand and planning data, will help cut those costs dramatically.
Manugistics Chief Technology Officer Robert Philips said the companies would first work to integrate Manugistics' Collaborate application, which enables buyers and suppliers to collaborate over the Internet, with Microsoft's Windows 2000 (news - web sites) Server operating system.
Integration with Microsoft's SQL Server 2000 database and BizTalk 2000 integration server will follow soon after, he said.
``Ultimately, we're going to take our entire supply chain suite and put it onto Windows 2000, SQL Server and BizTalk,'' Philips told Reuters. ``We'll also work with Microsoft as part of its .Net strategy to figure out the best way to integrate supply chain collaboration within the .Net framework.''
The companies said they expect to complete the integration within six months.
After that, the three vendors will work to develop standardized offerings that they claimed would reduce both the cost and implementation time.
For Microsoft, the move is part of a strategy to target the market for online marketplaces and in particular to provide technology to help get suppliers online as quickly as possible to get the business flowing.
Microsoft's first move came in November 2000, when the software giant announced its E-Business Acceleration initiative targeted at small, medium and large suppliers. At the time, Microsoft also said it was working with KPMG at the high end, to help get larger suppliers online.
In December, Microsoft built on this strategy with the launch of its BizTalk integration server, software which enables companies to integrate their applications to do business
with their suppliers and partners over the Internet.
Becky Kaske, director of business-to-business and supply chain for Microsoft, said this latest announcement with Manugistics was a logical extension to the company's marketplace strategy.
``We realized the importance of trying to integrate end to end with supply chain software,'' Kaske said. ``With this announcement, we're making a fairly big bet to say that Manugistics is a leader in this space.''
That said, both sides went to great lengths to stress that the agreement wasn't in any way exclusive.
Manugistics will continue to work with other database vendors, such as Oracle Corp. (NasdaqNM:ORCL - news) and Informix (NasdaqNM:IFMX - news), and Microsoft didn't rule out the possibility of working with other supply chain management vendors, such as Manugistics biggest rival, i2 Technologies Inc. (NasdaqNM:ITWO - news).
Manugistics (MANU) 50 1/16 +4 13/16 (+10.6%): -- Update -- Selected by Cisco Systems (CSCO) to power company's Supply Chain -- an extended global collaborative supply chain network linking Cisco with its contract manufacturers, distributors and suppliers. |