is headquartered in Palo Alto, California. There is also a German
subsidiary in Walldorf. The company employs nearly 300 people. By
year's end, that number is expected to reach 450.
Adding to the excitement surrounding mySAP.com
is SAPMarkets, Inc. Announced by Hasso Plattner in March 2000 and formally
incorporated in April, our deliverables are complete B2B online marketplace
solutions (in both infrastructure and applications) for both horizontal
and vertical marketplaces.
These online marketplaces enable enterprises
of all sizes and industries to conduct businesses more efficiently, by
dynamically linking buyers and sellers as well as facilitating collaborative
engineering across corporate boundaries. In addition, SAPMarkets will
provide supply-chain analytic and enabling technology for "meta markets,"
which are interconnected marketplaces that enable Internet users to access
numerous exchanges at the same time.
Why a New SAP Spinoff?
At first glance, the creation of SAPMarkets
might seem counter-intuitive to the larger focus on mySAP.com, but in
fact the seeds for this startup were sown when SAP management began to
closely examine the numerous possibilities inherent in mySAP.com.
We saw a big potential for Internet marketplaces,
but we felt that it would take a focused "dot-com" mentality to provide
our customers with both the technology and the cross-company integration
expertise they would need to bring it all to fruition at 'Net speed. We
also saw a need to cut across various organizations and geographies in
order to serve multiple customers and partners efficiently. It all led
to the conclusion that what SAP needed in the Internet marketplace space
was an approach rather different than that embodied in mySAP.com - i.e.,
a small company with the agility and flexibility to move rapidly, and
one that could exist and thrive at the cutting edge of the Internet revolution.
Relationship with SAP
Though SAPMarkets, Inc. was incorporated
as a separate company, SAP AG is and will continue to be our predominant
shareholder. More important, however, SAPMarkets will collaborate with
SAP AG and SAP field organizations on many fronts, from product development
to maintenance services. For example, SAP will license technologies to
and develop applications with SAPMarkets. In turn, we will develop core
marketplace technologies and use sales channels of SAP field organizations
to identify and target key customers. This is a mutually beneficial relationship,
where SAP gains opportunities to cross-sell or up-sell SAP products, while
SAPMarkets taps into SAP's extensive customer base.
Our target customers are companies who
are developing or plan to develop online marketplaces, both vertical and
horizontal, around the world. They include regional players and industry
consortia (many of whom are existing SAP AG customers) as well as dot-com
startups. The marketplaces could be either the "one-to-many" or the "many-to-many"
But regardless of size, the highest priorities
across this customer base with regard to e-business initiatives are speed
and functionality. At first, these organizations need speed because they
want to stake out their presence in the marketplace and lock in liquidity
in a fiercely competitive environment. However, the functionalities we
offer, including dynamic and transparent pricing mechanisms, seamless
integration with a wide range of services, and access to indirect as well
as direct goods, will encourage the "stickiness" - and long-term survival
- of a given marketplace.
In addition, the ability to meet process-focused
requirements, to drive efficiencies with buyers and sellers, and to truly
leverage the space as a neutral and winning site will all be the keys
to success for online marketplaces. So building enabling technology for
such marketplaces will, in turn, be the key to our success at SAPMarkets.
In the new and evolving world of Internet
marketplaces, our potential clients are learning as they go. Their aspirations
are great, but they lack business expertise, and that's what SAP brings
to the table.
Ultimately, customers will choose to work
with SAPMarkets because they will need a reliable and trusted technology
provider, one that can provide seamless integration rapidly. And it is
universally recognized that SAP has the deep technical and industrial
expertise and broad geographic coverage that potential customers are eager
to tap into.
For example, SAP's state-of-the-art direct
procurement applications with supply chain capabilities are unmatched
by rivals. SAP can offer this capability because of our deep process knowledge.
Our competitors have signed many LOIs but have not delivered many marketplace
solutions yet. The ability to really deliver on our promises will be our
Opportunities in Store
The marketplaces that will be the winners
are those that are more industry-focused, have locked-in liquidity, provide
dynamic and transparent pricing mechanisms, and handle complete order
management and supply-chain integration. "Meta markets" are the future
of B2B exchanges.
SAPMarkets is gearing up to seize this
opportunity by partnering with the right set of technology and service
providers, by developing the right set of applications, by bringing in
the best of SAP's technology, by training the field organization, and
by closely interacting with market-makers in all industries. In addition,
we will continue to take advantage of SAP AG's umbrella marketing campaigns,
which will ensure that the B2B theme remains strong.
E-business is all about speed, partnerships,
and new technology. We are rapidly moving to capture marketplace opportunities,
forge partnerships with third parties, and assemble new technology components.
And as an e-business venture that is moving to quickly capture the lead
in developing and serving the online marketplace space, SAPMarkets practices
what it preaches.
SAP and Commerce One Join to Deliver New E-Business Marketplace
A new marketplace suite will be the result of a successful joint
agreement between SAP and the creator of the Global Trading Web,
the world's largest business-to-business trading community.
SAP AG, SAPMarkets, Inc., and Commerce One, Inc., the leader in
global e-commerce solutions for business, have made a preliminary
agreement to jointly deliver a new e-business marketplace solution
for the Internet economy. This marketplace suite will offer companies
one-stop shopping for the entire range of e-business marketplace
services, ranging from collaborative design through fulfillment.
The companies also will jointly develop a next-generation e-procurement
solution based on customer requirements as part of the marketplace
suite. The marketplace suite will adopt Commerce One's XML Common
Business Library (xCBL), an industry-standard set of XML building
blocks, and a document framework that provides open integration
with all buying and selling applications, as well as open integration
with business applications in every industry. In addition, the companies
will extend xCBL to incorporate BAPIs.
As a result of this agreement, customers of SAP, SAPMarkets, and
Commerce One will be able to participate immediately in Commerce
One's Global Trading Web. With procurement software, all companies
running supported SAP enterprise software will be able to connect
to the new marketplace suite without upgrading their internal systems.