By Sonya Rabbitte, 30 August 2000 00:15
NEWS B2B software house Asera has received $115m of third round funding from some of the world's largest companies, including Andersen Consulting, BP, Kleiner Perkins, Morgan Stanley, Nortel, SAP and Siemens. The announcement looks set to up the stakes in the growing B2B sector, as increasing numbers of industry heavyweights buy their way into niche ecommerce technologies. Asera focuses on developing CRM software for B2B exchanges, and according to its European president, Gene Greiner, being relatively unknown has not been a problem. "We're not competing with Ariba and Commerce One. We're the next generation. They're focusing on the e-procurement side, we focus on the opposite side, the customer side," he said. Asera also boasts major players such as Cisco Systems, General Electric and Intel among its previous investors. Analysts say the impressive list of backers indicates that a niche market approach could be the next business trend. Andy Tanner Smith, analyst with Frost and Sullivan, said: "The niche market strategy is a good choice. When you think of B2B you think of Ariba and Commerce One, with IBM and Oracle not far behind. The market is quickly becoming consolidated, if not by revenue, then at least by market share. The best way to attract venture capital and attention is to find out the parts of the market the competitors are not looking at." Gary Cooper, analyst with Butler Group agreed that Asera is pioneering a trail for niche focused B2B vendors. "Vendors have to become specialists. They have to look to vertical markets that are not as crowded. They must have a product that differentiates them from the other players."
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