Today, B2B Supply Chain Cloud Technology provider E2open announced a subsequent move to change the prevailing economics of leveraging end-to-end supply chain capabilities, specifically in charging for seat access in B2B platforms.
Today’s announcement indicates that new client subscriptions will granted unlimited user access, no data volume charges or annual connection fees. Current E2open applications customers that are interested can reportedly convert their subscriptions to this new open access model at time of subscription renewal.
The move follows last month’s Visibility for All™ announcement, noted as an ability to remove existing market monetary barriers for real-time global in-transit shipment visibility across all transit modes. That reportedly included the ability to locate an unlimited number of shipments with estimated time-of-arrival (ETA), across modes, geographies and interim handoffs as part of current subscriptions.
As noted in the announcement, this latest move additionally raises the bar even higher by allowing unlimited users for all subscribed applications, available access for all ecosystem partners without a financial burden. The stated goal of this move is to accelerate the wider use of E2open’s broad applications suite and provide more time-to-value and benefits for clients. In effect, the move lowers the financial barriers that sometimes inhibit supply chain digital transformation initiatives.
Supply Chain Matters Added Perspective
Today’s announcement is increasingly noteworthy from a broader B2B Cloud market technology perspective. E2open has now even more upped the ante in eliminating known financial barriers to broader supply chain wide business process and decision-making capabilities. As many industry supply chains remained challenged in garnering multi-tiered visibility to the ongoing impacts of the COVID-19 coronavirus pandemic and other similar disruptions, this E2open announcement is indeed well-timed.
From our lens, this is now a clearer frontal assault to existing Cloud based industry specific B2B platforms, along with procurement, EDI and broader supply chain business network and customer fulfillment execution platforms. For technology platform providers, seat pricing has also been an accelerator for added revenue generation as more businesses expand their B2B connections and adopt broader applications, collaboration and decision-making. In its most recent annual Sapphire and ASUG customer conference, held totally online this year, SAP SE announced a broader multi-year thrust in supporting customer end-to-end supply chain visibility and B2B process collaboration efforts.
For individual businesses, especially larger globally based companies with extensive product demand and supply networks, seat pricing is an obvious financial barrier in incenting various suppliers and trading partners, large and small to engage with that platform.
Reflecting on the June announcement, we indicated that it remained to be seen how different competitors respond to this announcement. With today’s announcement, it appears that competitors can no longer ignore the market implications, without some counter move.
For multi-industry lines of business and their supply chain management teams, the financial barriers for onboarding supply chain digital transformation are about to become rather dynamic.
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