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Technology Stocks : Commerce One Inc - (CMRC) -- Ignore unavailable to you. Want to Upgrade?

To: Hands Off who wrote (1141)	4/14/2000 12:40:00 PM
From: Kashish King	Respond to of 1938

You don't need XML coders: using a standard set of tags for your particular industry (de facto or otherwise) you simply push a button and, poof, you have XML. Oracle does it right now, as does Microsoft's and IBM's database offerings. What is critical is that everybody agree upon the tags, that is, the data type definitions for the entities of a particular domain. It might sound high-tech but it's pretty low-tech, conceptually. As for your question about why companies are joining, my point is that they will use their existing IT outsourcing and in-house resources, primarily. They will buy software from the Oracle's of the world in the long run. Now, they can still make money hosting the exchange, like yahoo does or EBay does in their respective market spaces. But CMRC is going to rely on transaction costs almost exclusively. That is the big question mark, IMO, and I don't know how that's going to develop.

To: Hands Off who wrote (1141)	4/16/2000 12:27:00 PM
From: Pareto	Read Replies (2) \| Respond to of 1938

Let's compare it to the real world The exchanges Commerce One is building, does it resemble: - a port - a shopping mall - or a road system? A port is the physical example of a crosspoint of large amount of goods. Size is the measurement of successful ports. Some handle millions of containers per year, so they are able to build highly standardized loading and unloading systems. The concentration allows expertise and specialization. Costs per unit go down. But prices charged remain at a competitive level, there are always other ports nearby. The profit is only based on the efficiencies. Within the ports some actors understand their power so port authorities charge high taxes and trade unions negotiate high wages. A shopping mall reflects a large amount of buyers and sellers together. Malls are capable to charge a high rent and sometimes a high commission on sales. If charges are too high, prices will become to high and people will start shopping at the nearby mall. A road system is a sort of standard operating system for traffic flows. Their are always other roads that lead to your destination. If a road is fast and shorter than others you are will to pay a fee for using it. I think that the electronic exchanges are not different from real world examples. To the extent that they are efficient, fast and attractive for many users, they will be able to charge a reasonable fee. But it is no license to print money. I never heard of a port, mall or road operator in the Fortune top 100. Regards, Pareto