SAN MATEO (03/07/2000) - Cymerc Exchange Inc. today launched a full-service online exchange hoping to become the hub where IT shops can go to buy and sell used communications equipment.
The new business-to-business exchange, which will at first focus on markets for used voice and data communications equipment, hopes to use its business model to broaden into several other product segments that would be of interest to IT managers, according to company officials.
"We are seeing this tremendous opportunity emerging to create a single, central market for communications equipment worldwide," said Mark Weidick, the company's founder and CEO. "We hope to use our domain-specific experience here to service this segment and then leverage that into other IT markets."
Buttressing the company's business model is a series of domain-specific services including packing and shipping, certification, warranty, refurbishing, installation, and a suite of financial services. The company also has formed alliances with third parties and has tightly integrated their host-based sites with that of Cymerc.
Industry analysts have estimated that the secondary market for communication equipment is worth $10 billion. What encourages Cymerc officials about their chances is that commerce in the secondary communications systems market is highly fragmented and governed by outdated business processes, which has resulted in many instances in high costs and low returns.
Cymerc officials said they have created a custom-built site architecture that they believe achieves better integration and access to partner and user IT systems. Through the site, customers can buy and sell equipment several different ways by choosing from a menu of supporting services without having to leave the site.
Eventually customers will be able to track equipment from wherever it is picked up to wherever it is being delivered. Weaving back-end systems together from supplier's ERP (enterprise resource planning) systems also allows them to post available equipment directly from asset management systems, a company spokesman said.
Also today Cymerc announced it has signed a deal to work with Cysive, which helps users build e-business architectures, to re-engineer its own systems and build an e-commerce exchange engine. The technology will offer the capability for online auctions and smooth back end integration with logistics and financial services for Cymerc's customer base.
Cymerc Exchange Inc., in San Francisco, is at http://www.cymerc.com.
Ed Scannell is an InfoWorld editor at large.