Andersen Consulting Forms B-To-B Joint Venture With Sun - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Andersen Consulting Forms B-To-B Joint Venture With Sun

The race among big consulting firms to dominate business-to-business E-commerce continued Tuesday, with Andersen Consulting revealing it would create a new company with Sun Microsystems and iPlanet to outsource E-procurement software, services, and online marketplaces.

Andersen Consulting will be the majority owner of the as-yet-unnamed venture and will provide its E-business expertise. Minority investor Sun will be the venture's first customer. Andersen execs say their firm will be a customer, but did not specify when.

The new venture will buy up to $300 million worth of Sun hardware and services, as well as iPlanet E-commerce infrastructure and applications, during the next three years, says Dow Bauknight, president and CEO of the venture.

"We're unveiling a new venture to reduce the costs on indirect purchases [such as maintenance, repair, and operations, or MRO, items] within horizontal markets by as much as 50%," says Bauknight, a former managing partner of Andersen Consulting's supply-chain practice. Such indirect purchases include the online procurement of goods and services such as office supplies, computer equipment, travel services, and legal services.

"[The new venture] is about allowing people to focus on what they do for their business, rather than procurement," says Scott McNealy, chairman and CEO of Sun. "A horizontal MRO market is one that every company in the world should outsource."

The new company consists of about 100 former Andersen Consulting procurement professionals who will help their customers develop supplier strategies. It is expected to ramp up to 600 employees by December and attract more than $200 billion of spending on indirect goods and services by 2004, Bauknight says.

He says the new venture has letters of intent from several companies worldwide and expects to announce several new customers during the next four to six weeks.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Northwestern Mutual CIO: Riding Out the Pandemic
Jessica Davis, Senior Editor, Enterprise Apps,  10/7/2020
Register for InformationWeek Newsletters
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll