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

To: Boplicity who wrote (1732)	3/29/2000 3:47:00 PM
From: tekboy	Respond to of 1817

Um, can anyone explain why this Briefing.com analysis is wrong? 10:11 ET ****** B2B Medical Products : All of the primary B2B players are trading poorly of late, with Commerce One (CMRC), Ariba (ARBA), Ventro (VNTR), and i2 Technologies (ITWO) all well off their highs. With each passing B2B deal, we can see good reason for this cooling in the B2B sector. Today, it's the medical products and services companies that are setting up a B2B exchange. Johnson & Johnson (JNJ), GE Medical Systems (GE), Baxter International (BAX), Abbott Laboratories (ABT), and Medtronic (MDT) are the founding members of the exchange. And as with recent deals that we have written about in the aerospace and paper industries, this venture will be an independent venture owned by the founding companies. Or put another way, this exchange will not be owned by the B2B companies. In this case, the IBM/Ariba/i2 alliance has been selected as the technology provider. Commerce One was the winner of the aerospace business, and the paper exchange hasn't selected a vendor yet. But more important than the individual winners in each exchange is the broader trend concerning ownership of the exchanges. Hardly a day passes without the creation of another B2B exchange that is owned by the old economy companies forming the exchange. We have said it before and we'll say it again: the lottery ticket hope for the B2B companies is that they will own a slice of B2B transactions in perpetuity. But they are increasingly looking like a software and services solution for these new joint ventures owned by the old economy companies. With an emerging technology such as B2B, you can bet that all of the old economy companies are watching each other for hints of how to proceed. Anyone playing that waiting and watching game has received a clear indication of how this business is evolving, and that evolution does not include B2B exchanges owned by B2B companies. While it is still unclear how the B2B companies will be compensated for their role -- slice of transactions vs software licenses -- it is looking less likely that they will own a slice of transactions, and that's a good enough reason for us to take a step back from this sector until we get a better idea of the operating model for these exchanges. - GJ