SAP, Commerce One Land Exchange Deals

ByDoug Bartholomew Playing catch-up to i2 Technologies, Oracle Corp., and others in the online trading exchange market, SAP AG earlier this month snagged a pair of significant deals. SAP subsidiary SAPMarkets Inc. and trading exchange partner Commerce One Inc. have agreed to build an online exchange for 16 mining and metals companies, as well as a similar exchange founded by five North American utilities to serve the energy industry. Both exchanges are expected to be operating later this year. The mining and metals initiative, which includes Alcoa Inc., Alcan Aluminum Ltd., and De beers Consolidated Mines Ltd., will allow members to purchase supplies and sell products. By one estimate, the mining and metals industries will spend about $200 billion on procurement this year. The power industry exchange, to be called Enporion, includes five initial founders: Allegheny Energy Inc., New Century Energies, Minnesota Power, Northern States Power, and PPL Corp. SAPMarkets, based in Palo Alto, Calif., and Commerce One, headquartered in Pleasanton, Calif., joined forces in June to leverage each other's capabilities in a combined offering for the online trading exchange market. Commerce One offers an e-marketplace infrastructure and B2B software, while SAPMarkets Inc. brings its mySAP.com e-business software for procurement and supply-chain management.