Three top computer makers said Monday they cast aside fierce rivalry and jointly form an independent company that would serve as a business-to-business marketplace for computer and electronic supplies on the Internet.
the No. 1, 3 and 5 computer makers respectively, said they would come together in an Interent venture within 90 days. The venture aims at managing the computer maker's supply chains more efficiently and squeezing an estimated $600 billion in cost savings over the next few years, according to data from
But while the companies were still touting the new online competition between its suppliers,
said it would begin its own business-to-business marketplace, according to
reporter Maria Bartiromo.
This could prove to be one too many exchanges for a system that lives and dies on volume of trades and transaction costs.
The Compaq-HP-Gateway venture will also be funded by companies all the way down the supply chain. These investors include:
Advanced Micro Devices
The exchange will be open to all consumer and business electronic companies, contract manufacturers, suppliers and distributors.
"This new online exchange for technology components allows tremendous savings in the time, resources and money spent in procuring parts by openly integrating different buy side, sell side and service provider environments," Michael Capellas, Compaq president and chief executive, said in a statement. "The result will be lower transaction costs, lower sales costs, better pricing decisions and increased customer satisfaction."
Carleton Fiorina-president and chief executive of Hewlett-Packard said in an interview with
that it was an "easy decision" and that consumers will be the ultimate beneficiaries of these savings.
The announcement, made after the closing bell Monday, did not fuel an after-hours rally in the stocks, as the three stocks remained flat in evening trading.
The 12 founders will contribute $100 million to the new business-to-business venture and have equal ownership, according to a statement from Compaq.
The computer companies and suppliers follow the lead of auto makers and aerospace companies which formed similar ventures earlier this year.
linked their supply chains together in February, while