Event Summary
American Express (NYSE: AXP) and Ariba (NASDAQ: ARBA will cooperate on the development of advanced B2B E-payment services to be deployed over the Ariba Network. The first such service, expected in 60 to 90 days, will support payment upon shipment, with charges to Amex-issues purchase cards. Future services will include most of Amex' financial offerings, from trade financing to business loans.
The two companies will offer enhanced support services to joint customers, facilitating joint development efforts, and will recommend joint solutions to their individual prospects. Ariba's Network and Amex' own Internet-based B2B financial services network, still in a pilot stage, will interoperate fully and openly.
Finally, Amex will use Ariba's software solutions on a worldwide basis for "most of its annual procurement spending."
Market Impact
The most immediate impact is that Amex will be leading its 50,000 business customers right up to membership in the Ariba Network; although they will not have to join, the benefits and easy entre will be powerful inducements - and powerful increments to Ariba's bottom line.
While credit card companies will see threat in this announcement, Amex stated that they intend to create relationships with Visa and MasterCard in the future, as well as to deploy their payment solutions on other (unnamed) networks. We expect that executives from Concur will begin flying to Amex headquarters real soon now, even though such additional deployments are far in the future, because of the instant legitimacy partnering with Amex would add. Note that Commerce One recently entered a similar pact with CitiGroup.
SOURCE:
http://www.technologyevaluation.com/research/articles/ibm-is-not-enough-ariba-announces-strong-partnership-with-amex-15609/
American Express (NYSE: AXP) and Ariba (NASDAQ: ARBA will cooperate on the development of advanced B2B E-payment services to be deployed over the Ariba Network. The first such service, expected in 60 to 90 days, will support payment upon shipment, with charges to Amex-issues purchase cards. Future services will include most of Amex' financial offerings, from trade financing to business loans.
The two companies will offer enhanced support services to joint customers, facilitating joint development efforts, and will recommend joint solutions to their individual prospects. Ariba's Network and Amex' own Internet-based B2B financial services network, still in a pilot stage, will interoperate fully and openly.
Finally, Amex will use Ariba's software solutions on a worldwide basis for "most of its annual procurement spending."
Market Impact
The most immediate impact is that Amex will be leading its 50,000 business customers right up to membership in the Ariba Network; although they will not have to join, the benefits and easy entre will be powerful inducements - and powerful increments to Ariba's bottom line.
While credit card companies will see threat in this announcement, Amex stated that they intend to create relationships with Visa and MasterCard in the future, as well as to deploy their payment solutions on other (unnamed) networks. We expect that executives from Concur will begin flying to Amex headquarters real soon now, even though such additional deployments are far in the future, because of the instant legitimacy partnering with Amex would add. Note that Commerce One recently entered a similar pact with CitiGroup.
SOURCE:
http://www.technologyevaluation.com/research/articles/ibm-is-not-enough-ariba-announces-strong-partnership-with-amex-15609/
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