Act Now in Defense of the EDI Communications Market

Take Action Now to Preserve Fair Competition in the B2B IT Communications Sector.

Influential GXS Customers:

1) Demand in unambiguous terms, that your suppliers retain their unencumbered right to select the EDI VAN, B2B SAAS provider, or supply chain service provider of their choice. Insist that your EDI network messaging provider respect your supplier’s choice of EDI network. Period. Tell GXS that you stand behind your supplier’s selection of EDI network  provider. Leveraging any supplier’s access to a GXS resident Hub via interconnect pathways, called ‘route arbitrage abuse’, is sufficient cause for terminating a contract. Any entity that acts to impede the contractual relationships between buyers and their supply chain members needs to be put on high notice that these actions are unacceptable.

A prestigious corporation using GXS-TGMS for supplier communications should not tolerate these factitious, manipulating actions by GXS. IT Directors and CIOs would never accept any such  action by a telecoms provider, ISP, data center, or 3PL;  and it is similarly unacceptable for an EDI Messaging provider to dictate terms to your supplier community – especially if the terms are sure to increase costs to your suppliers.  Retailers,  Manufacturers, and Consumer Brands – if you are a wise GXS’ TGMS VAN customer, please take action and contact me, or the DOJ,  FTC, or FCC, they must hear directly from as many GXS clients as possible. Let us work together to eliminate all such market limiting actions that are perpetrated against your supplier community.

2) The Most influential Actors in the EDI communications sector are the Retail, Manufacturing, and Logistics Hubs; your trading partners ability to comply with  complex EDI requirements are impacted by having as diverse a range of EDI Services and providers, solutions , software, as possible. The EDI market is impacted by the adherence to transparent and ‘value free’ message routing across all major VANs and service providers. As I am concentrating on VANs first, please understand that eventually, all systems, even AS2, will have access to transparent message routing. However, this will never happen if GXS has their way…..for the way of GXS is to herd, yes herd, all  end-users onto TGMS, and to eliminate VAN interconnects totally, the Sherman act be damned.  I want to personally thank the DOJ for conducting such a smart and savvy HSR review of the GXS Inovis merger – NOT! The DOJ essentially franchised the monopolization of the EDI VAN sector by giving the green light to an avowed toxic monopolist who had shown in their past actions to abuse the power of EDI network traffic exchange agreements…shame on you DOJ. And, shame on the FCC for although being fully briefed on the impact of GXSs actions, has not taken one step or action to protect just the interconnections of this vital communications sector. Feh. 

Hey DOJ, Joe Wayland, Antitrust Crusader and new Division chief  – WTF! WTF! WTF!

Hey! FCC. Your agency is the Nation’s Communication’s watchdog! WTF!WTF! !!!

Professionals in the B2B IT market simply understand that ensuring the availability of cost-effective and diverse EDI services for all suppliers, large and small alike, starts with solid, standardized, ubiquitous communications services – the more diverse and innovative the better. The unprecedented abuse of established and settled interVAN routing policies, leveraging the consolidation of the VANs GXS acquired  (IBM IE, Inovis, and GEIS), is tantamount to admitting that the behemoth is simply unable to synthesize a credible way of competing with a brilliant Mr. Gould, whose ability to innovate as fast as he can type into Visual Studio – is uncanny.  GXS could only wish…..

The B2B communications sector has very few such prolific innovators – Todd created the one and only VAN built from the ground up for big traffic movers, like SPS Commerce, other Supplier enabling service providers, and the new breed of Virtual VANs.

Finding common cause between the Hubs, their suppliers, and Loren Data Corp is my singular quest ; GXS client’s should understand that they can make a difference, the big hubs can get involved and stay with GXS for all I care , as long as you all get involved. It will be worth it, and we will have a better market with stable prices for B2B Comms services, and better accessibility for your suppliers, at prices they can afford. 

The converse also applies: If GXS kills off Loren Data Corp, and then moves on to suck the blood from all other VAN interconnects….oh you don’t think they are stopping with Loren Data, do you? Please, open your eyes.

And I am not even saying that GXS should not be  in the market – after all the company has consumed 500 million in equity and has access to over 400M in credit facilities. GXS as a company of human capital alone has a scale that is simply unapproachable by most other companies.  Loren Data could take on the comms of a few GXS customers that only require messaging services, but for massive armies of engineers and B2B system techs? GXS, IBM Sterling, and one other…..maybe.

In regards to the issues of ‘what is right, what is reasonable, and what will work for the large hubs and their suppliers….. at least one does care:—gxs-to-terminate-loren-data-interconnects from the President’s Blog:

and the deluge of comments continue on Yahoo Groups EDI-L, the oldest listerve on the EDI universe. Here is also a growing collection of comments across many blogs and groups:

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