April 2000

IBM, i2 Technologies Ariba have announced what they term a "broad strategic alliance" to create what they claim will be the first end-to-end solution to business-to-business e-commerce and collaboration. As part of the deal, IBM is taking a small stake in each of the other two organisations for an undisclosed sum.

The three-way deal will cover the whole gamut of activities involved in business-to-business and business-to-consumer e-supply chains. It has several stated objectives, of which the first is to create integrated B2B marketplace solution that enables businesses to build and deploy full-service "marketplaces" rapidly. Such Web marketplaces are seen as increasingly important in global procurement strategies.

The second objective is to develop an integrated enterprise commerce solution which will help businesses incorporate B2B concepts into their buying, selling and supply chain processes from order to fulfilment. This is intended to allow them to integrate their processes with customers, suppliers and marketplaces.

The third, broader goal is to develop what is termed "a common suite of open network-based commerce services". These will cover a range of functions including payment, logistics, auction and collaboration. Such resources will be offered both as hosted Internet solutions and as software solutions.

IBM will contribute its extensive range of software, hardware and consulting resources, while i2 will bring to the deal its TradeMatrix services and B2B platform. This provides B2B and B2C marketplaces with intelligent decision support for direct procurement, fulfilment, supply chain management, commerce, product development, customer care and retail solutions.

Ariba, though less well known than its partners in the UK, has grown rapidly in the United States to become a leader in e-commerce software and systems, covering a wide range of supply chain activities but placing particular emphasis on e-procurement. According to its own account, Ariba "helps customers manage corporate purchasing on the Internet, build net markets, and provide suppliers with buyer access and integration."

Ariba hosted a customer event in London in March, and is evidently now moving towards strengthening its market present in Europe.