GE and Commerce One Join Forces

SAN MATEO (07/24/2000) - Business-to-business exchange heavyweights Global eXchange Services and Commerce One Inc. are combining forces in joint development agreements that will bring together their technologies as well as pave the way for combined sales and marketing efforts.

"We have been working on the relationship for the last several months," Jan Malasek, vice president of business development for General Electric Co.'s Global eXchange Services, in Gaithersburg, Md. "What we have done is signed a deal to license the BuySite Portal Edition of Commerce One."

Both parties have agreed to a memo of understanding governing joint development as well as sales and marketing initiatives, Malasek said. A definitive agreement due during the third quarter is expected to clarify pricing and revenue-sharing issues, he said.

GE and Pleasanton, Calif.-based Commerce One will be working to provide interoperability between Commerce One's XML Common Business Library (xCBL) and Global eXchange Services' (GXS) data transaction processing and trading partner translation technologies, Malasek said. There will also be support for EDI.

Commerce One will also brings its "expertise in building marketplace solutions," Malasek said. GE has developed exchanges for five major verticals -- manufacturing, retail, telecommunications, energy trading and transportation.

In addition to the technology initiatives, the alliance will provide GXS' network of 100,000 trading partners with access to the e-marketplaces of Commerce One's Global Trading Web through BuySite Portal Edition, Malasek said.

As for the revenue sharing models, "we are working on these models as we speak," Malasek said. "It's all to be part of the definitive agreement."

This agreement is aimed squarely at the against i2 Technologies Inc. /Ariba Inc. /IBM Corp. alliance, he said. While Commerce One and GE will provide offerings comparable to Ariba and IBM, Malasek said that Commerce One is likely to leverage its recently announced relationship with SAP to provide the supply chain management of i2.

Going forward, there will additional relationships with third parties for a variety of areas including payments and logistics, Malasek said.

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