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To: Happy Harry who wrote (590)	3/13/2000 9:38:00 PM
From: Frank Ferrari	Respond to of 1205

cbs.marketwatch.com Dell, American Express in Ariba pacts By Lisa Sanders, CBS MarketWatch Last Update: 8:42 PM ET Mar 13, 2000 Internet Daily Internet Daily Europe New! SAN DIEGO (CBS.MW) -- Ariba announced Monday that it has teamed with American Express and Dell to create new business-to-business services aimed at simplifying and speeding up e-commerce. Dell (DELL: news, msgs) also agreed to make an equity investment in Ariba, although terms weren't disclosed. Ariba offers business-to-business products to customers seeking e-commerce opportunities. Under the agreement, the computer maker will create a business-to-business marketplace, powered by Ariba's e-commerce platform, for Dell's small and midsized business customers to more cheaply and efficiently procure goods and services. Dell will generate revenue by charging a transaction fee to its customers. "Dell will use the Ariba procurement software to do all of its indirect purchasing, about $2 billion a year," Joe Marengi, Dell senior vice president for corporate business, told CBS.MarketWatch.com. Indirect purchases include, for example, office or cleaning supplies. "We expect to see about a 60 percent savings in our transaction expense by placing our orders with this software." Dell chose Ariba, which agreed to use Dell as its top hardware supplier, because Ariba is at the top of the business-to-business marketplace. The plan is to ease the process of implementing e-commerce into business functions. The idea is that the more e-commerce is enabled, the more businesses will require hardware to run it, which equals revenue for Dell. Dell will load Ariba software onto Dell servers and then help customers integrate and install it. For customers that don't buy the equipment or software, Dell will offer fully loaded hardware to the company's application service provider, Marengi said. In related news, Ariba and American Express plan to develop electronic payment services, co-enroll suppliers, and operate across both sets of suppliers and buyers. American Express will also use Ariba's e-commerce procurement function. See press release. Dell closed at 54 3/4, up 3 1/2, ahead of the announcement. See Tech Report. At the end of Monday's daytime session, shares of American Express (AXP: news, msgs) were down 1/8 to 126 9/16. Ariba (ARBA: news, msgs) closed at 298, registering a loss of 7 3/8. Lisa Sanders is a reporter for CBS MarketWatch.