IBM To Shift B-To-B Sales To E-MarketplaceIBM To Shift B-To-B Sales To E-Marketplace

IBM says it's moving its business-to-business Internet sales operations onto an XML-based network powered by software from E-market service provider E2open LLC. IBM officials say the move will let the company establish E-commerce links with large-business customers more quickly and at significantly less cost. XML is an open data-exchange format that helps connect disparate computing systems without the need for expensive custom coding and point-to-point integration used in EDI systems.

Cathy Lasser, VP for service-provider operations at IBM, says using E2open will cut the cost of establishing electronic links with customers by as much as 50%. "There's a huge savings potential here," she says. She adds that it will also speed order fulfillment "from days to hours" in some cases, though she won't put a dollar value on how much the company could save. IBM already uses the network to connect with about 200 customers but expects that number to double by next year. Ultimately, IBM is looking to use E2open as a gateway for all its Internet B-to-B sales.

IBM will pay E2open a fixed fee depending on the number of customers it channels through its system. IBM co-founded E2open along with several other high-tech companies, including Hitachi and Mitsubishi Electric.