IBM/Ariba/i2 Alliance In Question

Welcome Guest. | Log In| Register | Membership Benefits

January 10, 2001 (12:00 AM EST)

By Amy Rogers,

A new relationship between i2 Technologies and A.T. Kearney, the management consulting arm of EDS, is fueling speculation that i2 is angling to break away from the B-to-B alliance it formed last March with Ariba and IBM.

Under the pact, A.T. Kearney and i2 Technologies Inc. (stock: ITWO) will offer a service and product package called 2Source. The 2Source offering includes product sourcing and procurement plus development of online auctions and requests for quotes, functions that are bread and butter elements of the Ariba Inc. (stock: ARBA) platform. In addition, EDS Corp. (stock: EDS) will be a preferred supplier of integration services for i2's supplier relationship management product suite. In the Ariba/i2/IBM alliance, IBM Corp. (stock: IBM) typically handles integration.

Analysts said IBM is positioned as the buffer between Ariba and i2, two fast-growing companies that would like to own the B-to-B supply-chain space outright.

"I think there has been some lack of enthusiasm because services from these companies do, in some cases, overlap and compete with each other," said Current Analysis analyst Shawn Willett, citing IBM's WebSphere marketplace product. "[IBM, i2 and Ariba] will have to act fast to dispel the perception that this alliance is not working. They may want to clarify what the goals of the alliance are."

John Wilson, director of alliances at IBM's B-to-B solutions unit, told CRN last month that projects in development by some or all of the alliance's players have been moving along well.

"When we're at the implementation phase [of a B2B exchange], it's IBM," Wilson said about the power-sharing arrangement among the companies. "When we're at the selling phase, [Ariba and i2] have deeper industry skills than IBM has."

For example, if a client wants to implement an indirect procurement application first, then Ariba would take the lead, he said.

Recently, i2 has moved to fill in missing pieces in its strategy via partnerships with Acta, BroadVision Inc. (stock: BVSN), MRO Software, and other companies. In late December, i2 acquired Trade Service and its affiliate, ec-Content, to bolster its Infinite Content division.