Metropolis Transactive says it will directly benefit from a partnership between its US partner VerticalNet and Microsoft. Microsoft is to invest $100 million in VerticalNet and give the company marketing support through its portals.
"Whatever benefits come to VerticalNet in America will accrue in Africa," says Metropolis CEO Jason Xenopolous.
VerticalNet and Metropolis concluded an agreement in June last year, which gives Metropolis the intellectual rights to the VerticalNet platform and content for the African continent. The $1 million payment was a blow to a company already making a loss, but even at the time Xenopolous believed the partnership would save Metropolis three years in development time.
Now, he says, the benefits will become even more pronounced. "It`s all about creating liquidity in the markets." With support from Microsoft, VerticalNet expects to attract more business buyers to its communities. More buyers bring in more sellers and more products flow through the site.
"As the VerticalNet network expands there will be a direct benefit to Metropolis, because our networks are linked," Xenopolous says. Giving vendors access to a broader American audience would also make selling storefronts easier, he explains.
VerticalNet will gain exposure on the Microsoft.com, MSN and bCentral sites. "The target market is small businesses, which already have Microsoft on their desktops," Xenopolous says.
For its part, Microsoft gets a commitment from VerticalNet to accelerate its adoption of Microsoft technologies. "VerticalNet will be a great showcase for Microsoft`s Next Generation Windows Services and will demonstrate the scalability and flexibility of Microsoft`s platforms," says Laura Jennings, VP of Microsoft worldwide strategic planning.
VerticalNet also recently announced a joint venture (JV) with Softbank Corporation of Japan. The JV company, VerticalNet Japan Kabushiki Kaisha, will launch business-to-business vertical communities in Japan.
The agreement with Metropolis was VerticalNet`s first major international venture.
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