Intel/SAP e-commerce venture collapses because of losses

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Pandesic LLC, an joint e-commerce venture that Intel Corp. and SAP AG launched in 1997 with great fanfare, announced Friday that it's going out of business because of lackluster demand for the business-to-consumer technology and services it was trying to sell to companies interested in selling goods via the Web.

In a statement, Pandesic said it "plans to wind down its operations because it does not see a timely road to profitability." The Sunnyvale, Calif.-based company added that it won't sign any new contracts with users and will "work with existing customers to seek a transition" of support for their Pandesic-based systems.

In addition, Pandesic CEO Harold Hughes and President Pete Wolcott both resigned from the company last week. Catherine Yetts, an executive vice president at Pandesic, was named interim CEO and will run the company during the shutdown process. Pandesic didn't say how much longer it plans to be operational.

Customers and partners of Pandesic include OshKosh B'Gosh Inc., The Children's Place Retail Stores Inc., Citibank and Microsoft Corp. The company, which has about 400 employees, builds e-commerce platforms that include software, hardware, services, Web site hosting and training. An unspecified number of employees will be offered retention packages to help customers with the transition, Pandesic said.

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