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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Junkyardawg who wrote (49712)	8/22/2000 2:08:57 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 63513

I don't understand why CMRC is selling at such a low price Its because originally cmrc had a transaction-based fee schedule and a completely outsourced platform vs. Ariba which was software you bought once and had to install. So cmrc was a long-term revenue winner by that design. But the problem is that the pureplay exchanges like vntr are not getting the transaction volume forecasted by Forrester. People still associate cmrc with this revenue model and think cmrc will sink. The reality is that the posting of inventory on an exchange is a must-have but the actual buying hasn't taken off yet. So its not like nobody is using exchanges, they are definitely replacing purchasing catalogs but buying online isn't quite there since integration is not available with your erp, etc. (lots of reasons). Add to this the fact that cmrc has moved more to the ariba model and ariba has started a transaction model with their purchase of tradex. So the difference in business models is not as black and white as it used to be. Cmrc also gives away equity for the mega-exchange anchors so there is a little fear of dilution with cmrc you don't have with arba. But this is a minor consideration imo.