Thursday, March 5, 2015

E-commerce wars: IBM vs Oracle vs GSI

In the competitive online-stores-for-hire market, it's IBM, Oracle and King of Prussia's GSI Commerce, argues Janney's Shawn Milne.

E-commerce wars: IBM vs Oracle vs GSI

Oracle's $1 billion/15x profits (EBITA) takeover of Art Technology Group, at a price nearly 50% above Art Tech's recent trading value, is a tribute to the profits and growth of eCommerce sales for contract retailers, a business "dominated by GSI, Art Technology Group and IBM," reports Janney Capital Markets' Shawn Milne in a report to clients today.

Of the top 500 U.S. retailers, 43% use Art Tech; 31% use Michael Rubin's King of Prussia-based GSI Commerce; and 27% use IBM Websphere to fill online orders, Milne reports, citing a recent survey by Internet Retailer. "GSI has long-term deals" and keeps winning (or buying) new ones, he write, arguing the Oracle-Art Tech deal won't wreck GSI's business.

Oracle is a weaker competitor against King of Prussia-based GSI than, say, Google would have been if it had bought Art Tech, Milne adds: Google would have been more likely to take online retail sales out of host servcies into the "cloud" of networked computers, wiping out profits.


Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
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