Ariba and i2: The B2B love affair is over

Ariba and Rightworks produce similar technology.

i2 partnered with Ariba and IBM last March in a major B2B alliance. A total of $90m was spent on advertising the pact, but the alliance suffered from poor demand and conflicting business strategies.

Ariba itself showed signs of straying with last month's acquisition of Agile Software, a company which makes product description software for B2B catalogues - technology also offered by i2.

Ariba declined to comment on the specifics of the deal, but Nick Earle, president and general manager of Ariba EMEA, last week told silicon.com that Ariba was abandoning its collaboration with i2 because the company was not keeping pace with changes in the B2B marketplace.

He said that while the contract has not been cancelled, all joint B2B activities have ceased, and i2 is now to be viewed as a competitor.

However, analysts believe the alliance with Rightworks will cement i2's relationship with the other original partner, IBM.

AMR analysts Bruce Richardson and Randy Weston said in a statement that IBM Global Services is already working with Rightworks on B2B activities, targeting companies earning under $2bn in revenue.

"A Rightworks acquisition would really flesh out i2's procurement and sourcing promises," they said.

Rightworks ended 2000 with $36m revenue and around 70 customers.