Earl,
 

The short answer is, yes, that is the practice that they want to eliminate or 
more specifically control and have sole authority over. This is the practice 
that SPS Commerce, DiCentral, CovalentWorks, NetEDI, and nearly every single 
other service provider (a VAN without interconnects) has been doing since EDI 
began, whether it is through ECGrid, Liaison, Easylink, etc.

You can call it EarlVAN or EarlTheServiceProvider (a la SPS, CovalentWorks, 
DiCentral). This has been how EDI has been operating since before the  
internet...we used to call them a VAN if they directly interconnected, and a 
VAS if they connected through a VAN.
 
GXS’s excuses about latency, lost data, etc. is pure fabrication. These virtual 
VANs or Service Providers provide multi-tenant systems as opposed to 
single-tenant end-user configurations. The data travels the exact same path 
over the same number of  hops (or lack of them). In fact, using a service 
provider such as EarlVAN is frequently more reliable and responsive than 
one-system-per-vendor model because you know what you are doing and are getting 
paid to do it well, for many companies, in the same way.

GXS is taking the position that there can be service providers or virtual VANs 
in the market, but they must all connect directly and pay GXS to play. GXS then 
can exercise the right to not do business with any service provider they feel 
is a threat. By prohibiting that traffic over other other VANs, and refusing to 
connect directly (or making egregious demands to do so, such as in our case), 
GXS exercises the power prohibit any company it choses from competing in this 
market.

Additionally, GXS is now moving to enforce its “no third party/daisy-chaining” 
provision of their interconnect agreements, prohibiting all the other VANs from 
selling connectivity to GXS customers to EDI Service Providers. GXS now demands 
that all the traffic that goes to GXS customers is theirs alone to charge for, 
both ways, all sides. The other VANs should be quite concerned right now as 
that EDI Service Provider traffic is a sizeable chunk of billing they are about 
to lose.

Will the VANs lose their Interconnects to GXS for all traffic next?

-=tg=-


Todd Gould
President
Loren Data Corp.




From: Earl Wertheimer 
Sent: Friday, June 07, 2013 9:14 PM
To: [email protected] 
Subject: [EDI-L] GXS announcement and 'Daisy Chaining'

  
Todd,

I read both documents and wanted a better understanding of the following:

"Daisy chaining is a practice of having one EDI service provider enabling
downstream EDI providers which all become dependent on one connection."

If I understand this correctly, you (EDI service provider) can enable me
(downstream EDI provider) to setup my own EDI VAN.

Essentially, if I want to create an EarlVAN, you (Loren) can set me up.

All traffic flows from my clients, through EarlVAN, across to Loren then
out to other VANs. I would assume that EarlVAN is a virtual entity,
connected to Loren.

Is this the practice they want to eliminate?

thanks

Earl Wertheimer
mailto:earlw%40spe-edi.com
http://www.spe-edi.com 



[Non-text portions of this message have been removed]



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