SAP, Commerce One drop plans for online marketplaces

SAP, Commerce One drop plans for online marketplaces

German business software giant SAP AG and US-based electronic commerce specialist Commerce One have decided to rethink their strategic partnership by dropping plans to develop future online marketplaces for customers, SAP confirmed yesterday.

The 20-month-old partnership between SAP and Commerce One was first announced at the SAP user conference in Las Vegas in June 2000 and since that time SAP has increased its investment in Commerce One.

We still have a 20 per cent investment in Commerce One, that hasn't changed. What has changed is the marketplace. Two years ago, everyone thought that online exchanges were going to be the best thing and now that has changed. The customer is no longer interested," said Laurie Doyle Kelly, spokeswoman for SAP.

Commerce One could not immediately be reached for comment.

As part of the strategic partnership, Commerce One and the SAP Markets division of SAP established 17 co-development teams, based in California. The resulting MarketSite product was intended to compete with the online public marketplace products being developed by the partnership established between IBM, Ariba and i2 Technologies.

Last May, IBM, Ariba and i2 ended their collaboration because they no longer believed that online marketplaces had a viable future.

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