January 19, 2001, 5:26 PM — Financial institution J.P. Morgan a few years ago built for its own use a secure messaging service for guaranteed delivery of data between its offices in North America and Europe. The bank has now spun off the network operation as a separate company, TransactPlus, which will provide the guaranteed-delivery service to Global 2000 companies looking to share critical business data with supply-chain partners.
Transact is now prepared to assist in linking corporations' enterprise resource planning and supply-chain applications into the TransactPlus network, which processes data through two high-volume nodes in New Jersey and London, vice president of marketing Michael Brill says. TransactPlus, which archives and timestamps messages processed through its network, uses public-key information technology to authenticate origination, destination and the integrity of the messages sent from one point to another.
A Web-based hosted application that can be accessed through private line or over the Internet, TransactPlus will cost only a few pennies per message processed, Brill claims. "This is not for [Electronic Data Interchange]," Brill emphasizes, noting that TransactPlus is at heart a Web-based value-added network. "This will cost only 5% of what it costs to use an EDI VAN."
Quietly spun off as a separate company by J.P. Morgan earlier this year, TransactPlus continues to be used by J.P. Morgan to process about two million messages pertaining to billions in investments each day. The decision to spin off the processing network originated with the J.P. Morgan division called "Lab Morgan," the firm's high-tech investment start-up arm, which has 300 personnel and $1 billion to invest in new ventures. Lab Morgan decided to spin off the secure messaging network as one of its first ventures, giving it $12 million in funding.
TransactPlus also is seeking additional funding, with plans to build out the TransactPlus network in other metropolitan areas in the future. Brill said the hosted application is Java-based on Sun Solaris Global Transaction Routers. In addition to J.P. Morgan, TransactPlus now has two corporate customers, S1 Corp. and Acurion.