We have all read about how the volcano has disrupted millions of peoples lives. It has stymied logistics systems worldwide. The economic impact to companies globally have been devastating. Especially to industries already hit hard by the economic downturn. What can we do going forward?

We need better contingency planning, that is pretty evident based on the erratic reaction across the world. But what if we simplified the way we do business between companies.

I suspect most transactions occurring within a companies four walls have been re-engineered and automated using sophisticated complex enterprise software. But, over the last 20 years companies have struggled to advance the collaboration that occurs between companies. There have been many attempts to improve supply chains and the flow of materials, information and cash. The complexities of today’s systems makes the ability to easily connect buyers, suppliers and trading partners a very difficult process. With different technology platforms and proprietary systems still in place, the days when we can have one global trading platform may be a ways off.

There is hope on the horizon. Its not an ash cloud but a commerce cloud. We have heard a lot and will continue to hear about cloud computing. Companies like IBM and Microsoft are gearing up for the next big wave in computing delivery. Similar to the way the internet and client server displaced the central processing systems of the past the cloud promises to have the same substantial impact on the way companies operate.

Technology has over the years enabled more efficient ways to operate. The ability to conduct commerce in a whole new way using the Cloud will substantially change the way companies control the flow of materials, information and cash. The impacts of this are beginning to be seen as everyone rushes to improve their agility in this new economy. The commerce cloud may not be able to prevent against future volcanic ash clouds but by simplifying our processes and moving them to the new computing method should sure make the disasters less painful.

Paul Melchiorre is Vice President of Commercial Services Management at Ariba.

Also posted @ Ariba Exchange.