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June 12, 2000

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Making It All Work

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    The prerogative to choose the E-commerce components of one's choice, however, comes at a price-a highly skilled internal IT staff that can integrate and manage the end-to-end commerce-transaction and order-management system. Although it's a startup E-marketplace, SciQuest.com has substantial IT muscle in the form of 75 highly skilled people well-versed in Java, C++, and other information technologies, and it's confident that its IT staff can integrate the new pieces as fast as a third party. Most others aren't as optimistic.

    SciQuest deployed IBM's Net.Commerce-now known as WebSphere commerce and transaction engine-in the front end and Yantra's PureEcommerce order-management system to track and fulfill orders from end to end. Requisite Technologies' catalog-management system handles some catalog functions. But SciQuest is actively looking to add two key pieces-robust catalog aggregation and CRM systems-to its architecture.

    But even SciQuest needs better standards-based products for interoperability among products so that scaling is more of a plug-and-play process instead of an arduous chore. XML has emerged as the common language for enabling disparate data-whether in Microsoft Word, PDF or text files, or in SQL and legacy formats-to be translated into a single communicable format, and that's helpful (see story).

    The current wave of mergers, acquisitions, and strategic partnerships brings added functionality to marketplace shores. Vendors are beginning to build complex architectural frameworks that will let their own and third-party software be easily plugged in using standard interfaces, such as XML.

    "The beauty of XML is that software from different vendors can work independently of each other and still communicate as long as all parties agree to put the common, standard APIs around the software," says James MacKay, chief technology officer of i2 Technologies. "This lets E-services-from procurement, to fulfillment and product planning-be wired together in complex workflows."

    Yet even as vendors patch together E-commerce infrastructures, they face yet another challenge: how quickly and closely they can integrate their respective technologies. The fundamental differences range from server platform and programming language to object structures used to create applications to the user interface-either a browser or proprietary piece of software.

    If one software suite is written in Java using Enterprise JavaBeans and runs on a Unix operating system, and the other suite runs on Windows NT, is written in C++, and uses Active Server pages and the Distributed COM model, integration could be a lengthy process.

    Nevertheless, partnerships, mergers, and acquisitions seem to occur daily. Here's a sample of some major vendors' strategies and recent moves.

    Ariba In the past six months, Ariba has accelerated its efforts to become a business-to-business market leader. It acquired Trading Dynamics for more than $400 million, and Tradex for $1.5 billion. All of the products fall under the Ariba Buyer 7.0 umbrella as the core foundation for E-procurement functions. The Ariba Dynamic Trade Module provides auction and exchange pieces.

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