Monday, May 27, 2002

Sell-side e-business vendor pricing is in freefall. Just when it appeared that there might be signs of an upturn in the economy, AMR is reporting that "aggressive price cutting is taking its toll on [sell-side e-business vendors], with discounting for the first 5 months of this year averaging only 50% of average deal sizes from the first half of 2001." AMR is predicting a major shakeout in six months or less. Sell side applications allow customers to enter sales orders and check order status over the Internet. Some prominent niche players in this space include Ironside, Spaceworks, OrderFusion, and Blue Martini, as well as the ERP and SCM vendors that offer such modules as part of an integrated suite. AMR recommends that clients increase their due diligence on viability of the niche players in the coming year.

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