Commerce One inks deal with high-tech exchange

The online marketplace for the high-tech industry, eHitex, will be powered by Commerce One Inc.’s E-Marketplace service.

The exchange, first announced in May, is designed to improve supply-chain efficiency among its founding members, suppliers, and buyers. Members include Compaq Computer Corp., Gateway Inc., Hitachi Ltd., Hewlett-Packard Co., NEC Corp., Quantum Corp., and Samsung Electronics Co. Ltd., among others.

“That’s quite a feather in their cap,” said Joshua Greenbaum, principal analyst at Enterprise Applications Consulting, in Berkeley, Calif. “It’s a real marquee customer in a real marquee segment.”

The news, unveiled at Commerce One’s conference in Las Vegas, was one of a host of announcements the company made around its business-to-business e-commerce efforts.

Commerce One also announced that its MarketSet e-market solution with SAP AG, first announced earlier this summer, began shipping last Thursday. The solution includes Commerce One’s e-marketplace infrastructure and b-to-b technology with e-procurement, supply-chain, product planning, and analysis applications from SAP and SAPMarkets.

The companies also said they have delivered their first joint e-marketplace solutions, the Metals and Mining procurement marketplace, created by 16 companies in a US$200 billion procurement market, and Enporion, an open, global exchange for the energy industry founded by five North American power utilities. Both e-marketplaces are expected to go live this year.

“In the long run, this relationship with SAP will make both companies important players in the trading exchange market,” Greenbaum said. “The two companies combined bring a critical mass, a significant market presence, and product breadth that separately neither could do.”

The Commerce One-SAP partnership boasts more than 2,000 developers and a total of 4,000 to 5,000 employees, including those in consulting, sales, marketing, and business development.

“This partnership puts them in a position to challenge the rest of the market,” Greenbaum said. “Oracle (Corp.) is the only other company that can challenge on as broad a base as this partnership. Together these companies offer a strong message.”

Commerce One also introduced its affiliate program, along with an initial 40 business service providers, to syndicate business services for e-marketplaces.

The affiliate program takes advantage of the company’s MarketSet partnership with SAPMarkets.

“Through the Commerce One Affiliate program, we are delivering on our joint vision,” said Mayur Shah, president of SAPMarkets. “Our joint e-marketplace customers will be able to leverage premium business services without having to spend time and money on research and deal negotiation.”

Business service offerings syndicated through the affiliate program include eCredit, a provider of credit, financing, and receivables management solutions for e-commerce; Open Ratings, offering buyers third-party information about suppliers; WebEx, providing communications infrastructure for Web meetings; and YellowBrix, offering customized content, e-commerce, and personalization services.

Other members include, CarrierPoint Inc., clicklogistics, eMedius,, and ShipLogix Inc.

Commerce One also launched the most recent update to its Auction Services product, Version 4.0.

“One of the most important business services is auction services,” said Chuck Donchess, chief strategy officer and executive vice president of Commerce One.

Auction Services 4.0, due to be included in MarketSet and available in the fourth quarter of this year, will offer enhanced Multi-Variable Bidding, Multi-Level Bidding, Request for Proposals, and Request for Quote capabilities. New capabilities allow users to set up and run complex auctions and reverse auctions online.

Auction Services 4.0 also will offer new process automation capabilities to turn completed auctions into purchase orders.

The new version will also support 12 languages, including Japanese, Korean, Chinese, German, French, Italian, and Spanish.

In addition, the company announced that it has completed its merger with AppNet Inc. The merger will help fortify Commerce One’s consulting and professional services, the company said.

“This lets us add a whole new set of feet on the street,” Donchess said.