North American spending on technology infrastructure for private trading networks (PTN) will catapult from $230 million dollars in 2000 to over $37 billion by 2005—outpacing the growth of infrastructure investments for public net markets. According to a new Jupiter business-to-business (B-to-B) report, PTN infrastructure spending will grow nearly 300 percent per year through 2003, while spending on public Net Markets will grow only 95 percent per year through the same time period. Jupiter analysts attribute the shift and upsurge in infrastructure spending to the fact that public Net Markets can't handle complex procurement requirements such as inventory visibility, promotions management and materials organization.
"While public Net Markets have proven to be an asset for simple transactions, it is clear that companies expect B-to-B online trading networks to solve larger, more strategic process- related issues," says Marcia Loewenstein, Jupiter analyst. "Driven by the imperative to accelerate their time-to-market and reduce costs, businesses have clearly signaled their strong intent to invest in private trading network infrastructure. Companies that take full advantage of improved integration, collaboration and business intelligence offered by private trading networks will streamline design, development and overall buying processes."
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