Tag Archives: Interconnect

Interconnects Are The Market

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It’s fair to say that VANs were responsible for bringing EDI to current volume levels of transactions. It is also fair to say that interconnects between VANs were the path to their success. Traditional VANs and their interconnects built the market, now they are the market for newer technology (VAN2).

Yes, it’s possible that users could all migrate away from the use of VANs….someday. In April 2012, we wrote about “Do We Need VANs”. Many EDI specialists have done everything they could to eliminate the use of VANS. By doing so they saved tens of thousands of dollars in charges by moving to FTP and AS2 connections. But there were a few customers that required the use a VAN, and so they could not completely get rid of them.

In June 2013, we studied the subject of who regulates VAN interconnects: “EDI VANS are Undefined At Best”. The answer is… NOBODY.

Read more: http://ec-bp.com/index.php/articles/industry-updates/10222-interconnects-are-the-market#ixzz2lsPVd8lU

Open Text Buys GXS!!!

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OpenText Enters Into Agreement to Acquire GXS. Transaction Expected to Expand Information Exchange and Cloud Service Offerings.

Now for the rest of the story. If you have been following my series on David and Goliath, you know how giant GXS has been trying to bury Todd Gould’s Loren Data.

 Goliath is in a tight predicament. If he swings his might weapon at David, he risks falling off the cliff he is on. In other words, cutting Loren Data out of the fragile INTERCONNECT game COULD send the whole EDI World into a tailspin. It could spell the end of the 20+ year old “traditional” EDI VAN. Wonder if Open Text is aware of this? I sure would not want to buy a company that had this “baggage” hanging on their back.

Supply Chains depend on EDI. When they send a transaction to be routed to a supplier or customer, there is an “Expectation of Services” from all service providers involved. If a service provider intentionally blocks transactions for any reason, are they not are guilty of obstructing commerce (much of it is interstate commerce…..listen up Federal Courts).