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Strategies & Market Trends : Gorilla Game Investing in the eWorld -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (727)	11/17/1999 9:06:00 AM
From: Bruce Brown	Read Replies (3) \| Respond to of 1817

Thanks Mike, I was curious about that and presumed that one couldn't read the post at TMF unless they were a registered user - even though it is free. Regardless, I will post the link from now on and not the article. Although this is in retrospect, here it is: fool.com I posted the POD because I too was struck by the proprietary product of ARBA vs. the obvious Godzilla Game likeness of CMRC. Maybe that helps explain why CMRC trades like a Godzilla. ;-) Yes, we will have to look deeper in regards to the slice of pie for each transaction. I'll start digging around to see what I can find. CMRC deal with GM needs to be viewed in the light that GM owns a 20 percent stake of Commerce One. Hmmmmm......makes that deal seem ----- what's the word? ------............ Oracle being touted again today. This Gorilla is bouncing back with quite a year's performance. Any thoughts? BB

To: Mike Buckley who wrote (727)	11/18/1999 4:45:00 PM
From: Bruce Brown	Read Replies (1) \| Respond to of 1817

Mike and Gorilla Game Investing in the eWorld crowd, I've been asking around about Ariba and how they derive their revenues. Here's what I've come up with via a discussion with a few fellow investors. Ariba's e-procurement solution is composed of the Operating Resource Management System application and the Ariba Network. The Operating Resource Management System sits on the users desktops and Ariba network developed with Hewlett Packard is available from the Internet. Both automates the procurement process acting as a link between the buyer and the supplier. The Operating Resource Management System having additional capabilities on the back office systems. The proprietary license for the Operating Resource Management System costs approximately $1 million - for which they get several modules of software (I don't know how many modules) from which they can execute 100,000 transactions. The customer has to pay extra for additional transaction capability in 10,000 order blocks. In addition, they pay a 20% subscription fee per year for accessing the Ariba Network. A supplier customer simply registers with the company to access the Ariba Network. No fees are yet collected from the supplier unlike Commerce One's network. (This is in contrast to what I posted yesterday after another discussion on the Ariba board.) Revenue sources in summary are: Operating Resource Management System - $1 Million for several modules and 100,000 transaction blocks Additional transaction blocks available in blocks of 10,000 *20 percent annual subscription fee for accessing the Ariba Network Certainly proprietary software. I would say that the switching costs are high. The access fee for the network and the transaction blocks provide a steady stream of income. I believe I just heard that Commerce One is going to be interviewed on CNBC. So I will rifle this off to the thread and see what I can learn from the interview. I hope this was helpful. BB