Ford has not determined its fees. Mark Jarvis, Oracle's senior VP of worldwide marketing, says it's not necessary to run Oracle software to participate in AutoXchange, but adds companies using Oracle applications will derive greater benefit. And transaction fees may not be the only opportunity vendors are chasing. I'm sure that's one thing they see in it for themselves. Because exchanges run by major industry players have little precedent, the benefits remain unproven.
Analysts think that's unlikely.
That sticky situation is not unique to the automotive industry. But the joint operation has yet to name any HP competitors as participants. This company-centric model is a reflection of many industries, where a few large buyers call the shots, says Vernon Keenan, an internet analyst at Keenan Vision. Of course, if competitors create their own online exchanges, their trading partners will have to participate in multiple systems, each with its own costs and technical requirements. It's unreasonable to expect our customers will use a single system to make it easier for suppliers.