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Commerce One wins deal
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September 18, 2000: 2:03 p.m. ET
Company to supply software for eHITEX technology procurement exchange
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NEW YORK (CNNfn) - Business-to-business software company Commerce One announced Monday that it had been selected to supply the software platform for a high-tech industry procurement exchange.
Commerce One (CMRC: Research, Estimates), based in Pleasanton, Calif., said that its B2B software will power the pilot of eHITEX, an electronic marketplace for the high-tech industry. The marketplace was launched last May as an independent company by 12 leading tech firms, including Compaq, Agilent, Hewlett-Packard, NEC and AMD.
Computer and chip companies will use eHITEX to buy components and manage their supply chains. The marketplace's founders have said that the collective annual procurement spending of the eHITEX partners exceeds $300 billion.
eHITEX was designed to be an open exchange, equally accessible to all buyers and sellers in computing and related industries, including original-equipment and contract-equipment manufacturers. In addition, it claims to be independent, with its founders acting only as passive shareholders, not active managers of the exchange. 
eHITEX is using Commerce One to run auctions on demand, enabling members to buy and sell both components and finished goods. The exchange estimates that by the end of this year its members will be conducting 500 or more auctions per month.
"We're extremely impressed with Commerce One's platform and the speed of implementation," said Wendy Caswell, interim co-CEO of eHITEX, in a statement. "In only 30 days, Commerce One was able to implement and host the eHITEX e-marketplace and enable live auctions."
eHITEX competes with an exchange called E2open.com, which was founded by a group of tech companies including Hitachi, IBM, Lucent Technologies, Nortel Networks, Matsushita Electric (Panasonic), Seagate Technology, and Toshiba. E2open runs on technology from Ariba (ARBA: Research, Estimates), i2 Technologies (ITWO: Research, Estimates), and IBM. Ariba and i2 Technologies are Commerce One's main competitors in the electronic marketplace and supply chain software areas.
Like eHITEX, E2open.com is an independent entity, and it has $200 million of funding from its founding partners.
In midday trading Monday, Commerce One stock was down $3.81 at $66.38. It has declined 60 percent from its 52-week high of $165.50, as the air has come out of the previously over-hyped B2B software sector. 
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eHITEX
E2open
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