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To: Lizzie Tudor who wrote (3250)	11/20/2000 2:02:13 PM
From: Wizard	Read Replies (1) \| Respond to of 57684

Consortiums that are only trying to "cut out the middlemen" are in big trouble. The competitive advantage gained in cutting out middlemen will be fleeting. The point of B2B is to automate business processes and replace inventory with information. Both i2 and Ariba help do this. At the end of the day, enterprises are the real buyers of this functionality. Consortiums will produce revenue for these firms but that revenue really comes as a result of the enterprises that sponsor the consortium. Consortiums without major industry backing do not have a business model. The dollars that pay both i2 and Ariba will come directly from enterprises or indirectly from enterprises (through backed consortiums). There are potential 3rd party dollars (VC firms and IPO dollars) but these dollars won't be significant over the long-run.