Evidence that the internet is achieving one of the promised changes - opening up traditional marketplaces to new ways of doing business - is beginning to mount.

Three major oil companies have each signed deals with e-commerce partners to set up web-based energy marketplaces.

Chevron, the second largest oil firm in the US, plans a website enabling companies to buy and sell a range of energy-related products. Royal Dutch/Shell and Norway's Statoil are planning similar ventures.

All three expect to be up and running in the second quarter of this year. The companies will be looking to make substantial savings on transaction costs and attract significant amounts of new business.

E-commerce analysts have predicted that web-based procurement costs for energy products could be 5%-15% lower than traditional methods.

The bad news for technology giant IBM centres on a variant of the Y2K bug, which has struck where it hurts most.

Says chairman Louis V. Gerstner, Jr: "As we had anticipated, the Y2K issue hit us hard in the fourth quarter. Many of our large customers had locked down their computer systems as they prepared for the Y2K transition. While we are pleased that this transition is proceeding smoothly for our customers, these lockdowns had a significant negative impact on our revenues and earnings in the quarter."

That hasn't stopped IBM from having a particularly good year, however. E-business income alone was up 60%, and a number of big outsourcing and collaboration deals were signed, including with Ford, Vodaphone and Cable & Wireless.

Elliott Chase