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NEWS
Mar 10th 2000: Peoplesoft's ASP strategy opened a new chapter with the launch of its own ASP operation this week. Peoplesoft eCenter will provide solutions based on the vendor's own enterprise software direct to customers. Peoplesoft believes that within two years, as much as 40 to 50 percent of its software licence revenues could come through ASP sales, president and CEO Craig Conway told media in a conference call on Tuesday (Mar 7th) to announce the launch. Describing itself as a "next-generation ASP", Peoplesoft eCenter is now offering the vendor's financials, human resources and e-procurement software to north American customers. Later this year it plans to add its customer relationship management (CRM), supply chain management, online sales and business intelligence applications, as well as complementary applications from other vendors. Global availability is expected next year. Peoplesoft has held back from a pay-as-you-go licensing model for its direct foray into the ASP market, insisting that customers pay upfront for the software license, plus any implementation and integration work, offering a lease finance option if customers wish to pay by instalments. eCenter provides the service element on a per-user, per-month basis, and it has shortened the minimum contract period to eighteen months rather than the normal two or three years. "We want customers not hostages," commented general manager Deepak Gupta. Although in direct competition with Peoplesoft's existing channel of eleven ASPs and application outsourcing providers, company officials said they hoped to avoid conflict between the two sales channels. Partners will remain the preferred provider where customers are looking for a mixed-vendor solution or where they need specialist industry expertise that Peoplesoft is not able to offer. The partner channel, first launched in Sep 1998, includes ASP industry leaders such as Corio and USinternetworking, recent high-profile launches Surebridge and Agilera, and new Interliant acquisition reSource Partner. eCenter will use Peoplesoft's own CRM software, which it acquired with the purchase of Vantive last year, to provide a Web-based, self-service support portal to customers. They will be able to review problem status, search for information or post queries, and in some cases add or amend users. There will be dedicated customer account managers to manage the service relationship and expedite service issues where necessary.
The new division draws on the experience of Peoplesoft and of rival direct ASP operation Oracle Business OnLine (BOL), from where it has drawn a substantial slice of its management talent. Deepak Gupta, formerly chief architect and strategist at BOL, leads the division as VP and general manager, aided by fellow-BOL alumni Gary Robinson and Gopesh Kumar. Other management figures include Andy Allbritten, previously PeopleSoft's director of
eCenter data centres are colocated with Exodus, and the communications infrastructure is based on MCI WorldCom frame relay services. Pilot Network Services provides security, while Sun is the preferred server platform. Implementation services are provided by Peoplesoft authorised global solution providers Arthur Andersen, Deloitte Consulting, IBM Global Services and KPMG, or by implementation partners such as Brightstar, Cotelligent or The Hunter Group.
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ANALYSIS
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