SAP and Commerce One face SRM battle

The long-term relationship between SAP and Commerce One could be on the rocks, following a decision by SAP to move into supplier...

The long-term relationship between SAP and Commerce One could be on the rocks, following a decision by SAP to move into supplier relationship management (SRM).

SAP's planned launch of an SRM product could make the company a direct competitor of Commerce One.

According to a source familiar with the company's plans, SAP will end joint sales of the joint venture's procurement product. However, the source said, the two companies would continue to work closely.

"Commerce One will continue to be a strong partner in the integration technology space. We will definitely continue to work with them for joint development on future products." said the SAP spokesman

The spokesman declined to comment on the future of joint development and marketing of Enterprise Buyer, the procurement product, or MarketSet, the joint marketplace system.

The loss of SAP as a key revenue-sharing partner could come at a crucial time for Commerce One, which posted a $2bn (£1.4bn) net loss for the quarter ending June 30 and an $119m net loss for the quarter ending in October. In June, SAP pledged $225m in new investment capital to up its stake in Commerce One to 20%.

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