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FreeMarkets Evolving After Old-Style B2B Software Disappears.(INTERNET & TECHNOLOGY)(Q & A)

Investor's Business Daily

| April 02, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MURRAY COLEMAN

Nobody seems to want to fess up to specializing in business-to-business e-commerce anymore.

No wonder, with big software makers like SAP AG, PeopleSoft Inc. and Oracle Corp. moving into B2B.

So what's happened to the little guys who first created software for online auctioning and electronic payments between companies?

To a great extent, they're gone. Some were gobbled up by bigger competitors when times were good. Others were shuttered during the rough market of 2001. But some are still around, trying to revamp and change course as B2B becomes more mainstream.

For B2B software firms, the days of making a living solely by charging fees for setting up Web-based marketing and transactions are over. In the case of Pittsburgh-based FreeMarkets Inc., helping customers find better suppliers is key.

That's what it's been doing since 1995. The company's fared better than most rivals, but it still faces challenges. Its stock took a beating last week amid fears that new customers would be hard to find.

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