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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (27884)	7/13/2000 10:22:44 PM
From: foundation	Read Replies (3) \| Respond to of 54805

"Ariba sure looks like top dog as independant at present." ARBA's and CMRC's business models are, contrary to popular perception, very different. ARBA has, primarily, a more traditional software business model. This is more predictable and easier for analysts to understand, which has provided ARBA greater institutional sponsorship than CMRC. They should become profitable sooner. CMRC is on a riskier, but potentially exponentially more lucrative track. CMRC is looking for equity interest in, and ongoing revenue streams from exchanges, plus their own network tolls. The number of Exchanges that CMRC has set up is geometrically greater than ARBA. ORCL is involved with only 2 or 3 (Ellison seems to have stopped trying). But the true key to CMRC, is that they are tying the plethora of individual exchanges together with their own truly global exchange network, which has its own toll booth. They have, easily by a geometric factor, the most suppliers and buyers tied into the same network. Consider all the suppliers and vendors for the Auto mfr's, the Plane mfr's, etc, etc, - repeated on all developed continents. (It is important to note that ARBA talks this game, and analysts are always quick to note that ARBA hopes to increase % of exchange-related revenues in future as an indicator of future growth. But ARBA is so far behind in this vein that it cannot catch up. ARBA will remain primarily a software vendor.) Suppliers must deal with multiple vendors, and they cannot be expected to, nor will they deal with multiple proprietary exchange platforms (have different, costly catalogs, and software tying their databases to different proprietary exchanges, etc.). And suppliers hold sway in making B2B work. CMRC has the dominant, most developed network, inhabited by, by far, the largest population of suppliers. This will be their advantage as B2B evolves toward one network. regards, blg