Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News

      Looking For Hope Amid Ruins

      Written by

      John S. McCright
      Published January 15, 2001
      Share
      Facebook
      Twitter
      Linkedin

        eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

        Investors gasped last week when Joe Galli left his post as CEO of business-to-business e-commerce enabler VerticalNet Inc. to take the top spot at consumer products maker Newell Rubbermaid Inc.

        To many, it was the latest repudiation of the e-marketplace business model and led some to say the shakeout in B2B businesses is in full swing.

        The shakeout in vertical e-marketplaces showed itself elsewhere. OneChem Ltd., an e-marketplace and application service provider for the chemicals industry, quietly laid off half its 40-person work force last week. Also last week, food services company Instill Corp. laid off 36 of its 200 employees.

        Net market FoodUSA.com was scrambling to keep from closing its doors. Like Ventro Corp., which closed two e-marketplaces last month, Food USA.com officials blamed their companys problems in part on the arrival of a competing exchange led by industry heavyweights, including IBP Inc. and Tyson Foods Inc.

        But VerticalNet is different, said founder Michael Hagan, who was named the companys new CEO last week. Unlike Ventros e-marketplaces or OneChem, it does not charge a fee on every transaction completed on its marketplaces. Instead, it charges an annual fee for things like electronic storefronts that enable small and midsize companies to engage in e-commerce. One of Hagans first tests will be to persuade VerticalNets customers to renew their storefront contracts, many of which come up in the next quarter.

        Hagan sees those renewals as an opportunity to sell new products, including hosted customer relationship management applications, inquiry management tools, and online customer service and help desk software. Through its partnership with Microsoft Corp., VerticalNet will integrate Great Plains Software Inc.s accounting software, Hagan added.

        But first, the Horsham, Pa., company has to get the egg off its face left by Gallis departure. In August, VerticalNet trumpeted the appointment of Galli, who came from Amazon.com Inc.

        Although Hagan said Galli was not involved in all the strategic decisions that the company made during his five-month tenure, some analysts said Galli helped VerticalNet begin to move beyond startup mode by splitting the company into three divisions and bringing maturity to the sales force.

        Industry analysts say that the rush by companies in the B2B space to use public shareholder investment during their sensitive startup phases has taken the bloom off the B2B rose. As was the case with the stock market craze for business-to-consumer dot-coms, many investors in B2B companies had unrealistic expectations, said George Santana, an analyst at Los Angeles-based Wedbush Morgan Securities.

        “These companies probably should not have raised so much money in the public markets,” Santana said. “Thats not to say that all of them are going to fail. The right formula has to be found. I think that is going to happen in 2001.”

        As some of those e-marketplaces struggle, Hagan sees an opportunity. “Well be a consolidator in 2001,” he said.

        Hagan looks to double revenues and make VerticalNet profitable this year. Still, the company isnt out of the woods. For example, its offer to buy online financial services company SierraCities.com Inc. is likely to expire this week without the deal closing because VerticalNets stock price has dropped more than $20 per share since the tender offer was made last fall.

        If the deal falls through, then VerticalNet will still license SierraCities technology and integrate it into its software and services offerings, Hagan said.

        John S. McCright
        John S. McCright

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        MOST POPULAR ARTICLES

        Artificial Intelligence

        9 Best AI 3D Generators You Need...

        Sam Rinko - June 25, 2024 0
        AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
        Read more
        Cloud

        RingCentral Expands Its Collaboration Platform

        Zeus Kerravala - November 22, 2023 0
        RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
        Read more
        Artificial Intelligence

        8 Best AI Data Analytics Software &...

        Aminu Abdullahi - January 18, 2024 0
        Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
        Read more
        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Video

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2024 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×