NEWS	Week's Top News | Alliances | Business/Finance Product Launches | Trends

September 29, 1999

September 1999 NEWS IN BRIEF

MS puts $82m on USWeb platform Sep 29th 1999: Microsoft yesterday announced investments totalling $82.4m in USWeb/CKS to fund development of the web solution provider's iFrame architecture for application services. USWeb will use Microsoft's Windows DNA 2000 technology as the basis for iFrame, which provides a platform for delivering fully integrated suites of Internet-based business applications. It plans to offer a range of packaged and custom applications, with the first becoming available on a per-month subscription basis in the fourth quarter this year. In time, it hopes the standardised architecture will smooth the way to enabling Internet-based trading and other electronic processes between multiple clients. A joint technology development lab set up by the two partners on Microsoft's Redmond WA campus will also be operational in Q4. Microsoft's investment is made up of $67.5m to fund development and marketing of iFrame-based services - on which USWeb will start paying royalties to Microsoft after eighteen months - and a separate $14.9m for a warrant to purchase USWeb shares at a fixed price. The announcement marks the largest ASP-related investment by Microsoft since its $200m stake in Qwest last December, and is a relaunch for USWeb's Managed Services division, which as USWeb E-Services first laid out its ASP pitch in February this year. * See related ASP News Review stories, USWeb claims ASP leadership (Feb 25th) and MS shilling funds Qwest app hosting (Dec 17th) * USWeb/CKS * USWeb/CKS Managed Services * Microsoft press release

Uunet UK trials partner scheme Sep 27th 1999: Global ISP Uunet is extending its partner programme to embrace ASPs, ISVs and original equipment manufacturers (OEMs). Launched in the UK last week, the new Developer Partners scheme is due to be rolled out worldwide as early as possible, company sources told ASP News Review. The first members of the scheme are Swindon UK-based startup Equiinet, which manufactures a packaged Internet access solution for small businesses, ASP infrastructure provider eSoft Global, and application server vendor Progress. "We intend to bring into this new programme partners who are the market leaders and innovators," said programme manager Steve Vanterpool. Last week (Sep 20th), Manchester-based eSoft, together with Irvine CA-based Futurelink, became the first to sign as an ASP hosting partner for Progress Software's ASPEN (ASP Enablement) programme. The two providers will incorporate Progress ASP technology into their data centres in readiness for hosting ASP solutions developed by the vendor's ISV partners, giving the scheme coverage across both north America and Europe. * Uunet Developer Programme * Equiinet * eSoft Global * Progress * Futurelink

eAlity apps plug smallbiz gaps Sep 24th 1999: Startup ASP eAlity this week (Sep 21st) launched its suite of over forty hosted applications designed to automate business processes in small to mid-size enterprises. With facilities for integration into popular accounting packages such as Quickbooks and Great Plains Dynamics, the mini-applications cover common administrative procedures such as purchase requisitions, order processing, expense reporting, office management, timesheet recording and recruitment. eAlity, based in Foster City CA, developed the applications from scratch for online delivery and provides the service direct. It has already recruited twenty customers, including retailer Williams-Sonoma, ISV Chordiant Software, and several dot-com businesses. It plans to work with Great Plains channel partners and with portals and ISPs to extend its market reach. * Read more about eAlity's business strategy in an interview with founder and chairman James Kao in October's ASP News Review newsletter ... click here>> * eAlity

Oracle CEO rules out rental Sep 17th 1999: Although it claims to be the world's top ASP, Oracle will never rent its software, CEO Larry Ellison told reporters at a briefing in London today. "Are we going to rent our software for a month [at a time]? The idea's nonsense," said Ellison in response to a question posed by ASP News Review. The time and investment that it takes to configure enterprise applications for deployment makes monthly rental an inappropriate model, he explained. Oracle views hosting by its ASP division, Business Online, as an optional service that customers can choose when they buy Oracle applications. As part of the service, the cost of the licence is spread over a three-year contract. "We sell our software, we sell our services, we sell our hosting services. You can pick any combination," said Ellison. "We think it's working very well. We're the number one ASP," he concluded. * See related ASP News Review stories, Oracle backs e-services over ASPs (Aug 21st) and Oracle will host third-party apps for rent (Oct 8th) * There's an interview with Oracle Business OnLine president Chris Russell in September's ASP News Review newsletter ... click here>> * Oracle

Siemens joins SAP's ASP lineup Sep 17th 1999: Siemens announced its entry into the ASP market at the formal launch of SAP's mySAP.com strategy in Philadelphia this week (Sep 14th). SAP's application hosting strategy for its enterprise portal product allows customers to test and configure the app via the Internet, and then opt to have it hosted at a certified SAP Application Service Provider partner. Siemens Business Services, the Burlington MA-based IT services arm of the German technology group, joins a current lineup of certified ASPs that includes EDS, eOnline, Interpath, Qwest Cyber.Solutions and British Telecom. Siemens already claims over 100 R/3 application hosting customers worldwide. * SAP partner eOnline announced Tuesday (Sep 14th) an alliance with HP that allows HP channel partners worldwide to resell its R/3 application services to small- and medium-sized businesses. Cupertino CA-based eOnline has a channel-only strategy and will help HP to train and certify its channel. HP will also be able to sell solutions implemented by eOnline's eSolutions partners from within the SAP partner channel. * See related ASP News Review stories, eOnline captures SAP partners (Aug 27th), SAP to host try-before-buy (Jul 23rd) and SAP confirms hosting strategy (May 5th) * SAP * Siemens Business Services * eOnline

Futurelink buys two for $33m Sep 11th 1999: Futurelink Wednesday (Sep 8th) announced agreements to acquire two more Citrix integrators in deals worth a total $33m, $10m of it in cash. Async Technologies Inc (ATI) of Detroit MI and CN Networks Inc (CNI) of Pleasanton CA will add 47 more employees, a further $15m in annualised revenues, and offices in San Francisco, Detroit, Chicago and elsewhere to the ASP's operations. Futurelink is already close to consummating the merger of the original Calgary AB-based ASP with Irvine CA-based Citrix integrator Micro Visions, as agreed in June. More acquisitions are on the cards, company president and Micro Visions founder Glen Holmes confirmed to ASP News Review this week, as the business builds up its engineering resources and regional coverage both in the USA and internationally. "I need more engineering talent that knows what it's doing," he said. Executive chairman Phil Ladouceur continues as interim CEO, after founder Cameron Chell unexpectedly took temporary leave of absence from the top post last week (30th Aug). Chell, who cited personal reasons for stepping down as a director and officer of the company, is continuing to represent Futurelink as founder and to serve as president of the ASP Industry Consortium. * See related ASP News Review story, Futurelink buys US reseller (June 3rd) * Futurelink

New Origin model embraces ASP Sep 7th 1999: Leading application outsourcer Origin today unveiled a new product strategy that includes a set of industry-specific ASP solutions as its entry-level offering. Launched initially in The Netherlands, Belgium and France, the ASP offering provides prepackaged SAP applications at three service levels - economy, business and first - starting at a monthly per user price of 299 euro ($US280) for economy. The ASP announcements form part of the Overture suite of services, a completely revamped outsourcing portfolio from Origin, which is headquartered in Eindhoven, The Netherlands. With the aim of fostering a new level of trust and transparency in outsourcing relationships, Overture introduces features such as joint venture funding, regular reviews by independent experts, and new pricing models inspired by the ASP model. "One of the advantages ASPs have brought is that at least the billing is understandable. We think that should apply through all outsourcing," executive VP of global enterprise solutions John Le Rossignol told ASP News Review. * Origin

Bureau bets $3.8m farm on ASP Sep 6th 1999: A 33-year-old Australian human resources and payroll services provider has invested $US3.8m in developing ASP offerings based on SAP R/3 finance, HR and logistics apps, and plans to shift its entire business to the ASP model by 2001. Melbourne-based Allegiance Systems brought Australia's first two ASP customers live on time and on budget with SAP R/3 in July, both of them government departments in the state of Victoria. With a history of providing mainframe-based bureau services to public sector healthcare organisations, Allegiance believes the ASP model will allow it to push into other markets, while enabling it to rapidly transition its core customer base off the mainframe and onto its new Sun Solaris based ASP data centre. With other providers in the region also developing ASP schemes for R/3, "we view ASP as another channel of distribution," SAP Australia alliance director Helen Mair told ASP News Review. "I think companies here are early adopters. But we're not experimenting." (Report by David Braue) * Allegiance Systems * SAP Australia