Mar 18th 2000: A rebel band of hot ASP startups have begun marshaling their forces for the struggle to rescue their ideal from the clutches of the established IT industry.

�Big companies are tripping up the [ASP] bandwagon, they are climbing on with such weight,� said Steve Papermaster of Agillion, leader of the revolutionary Internet Business Services Initiative (IBSI), briefing ASP News Review this week.

Meeting privately in Austin, Texas, at the end of last month, representatives of thirty-five Internet-based application and business service providers agreed to convert their informal alliance into a formal industry association. Eleven of the group, led by Agillion, works.com and Employease, first set up IBSI last December (see related story, New group champions BSPs - Dec 16th, 1999).

The new group will work to publicize the features and benefits of a business model which they believe merits its own three-letter acronym: IBS (Internet Business Services). �The most exciting new sector related to ASPs are the Internet Business Services companies,� said Papermaster, who is co-founder and CEO of Austin-based customer relationship management startup Agillion.

According to the group, Internet Business Services are solutions designed explicitly for delivery across the Internet that automate business processes. They differ from traditional applications delivered by ASPs because the software is shared by users, rather than needing a separate copy dedicated to each individual customer. It is this one-to-many architecture that is the key to a revolution in ease of adoption, cost and commerce opportunities, says the group.

�There is a new value chain,� Papermaster said Thursday in an exclusive interview with ASP News Review. �Everyone involved knows that this is the breakthrough for making the Internet go mass market for business.�

IBSI will take shape as a formal association over the next six months, first signing up charter members so that it can incorporate as an organisation, and then developing a membership validation program as a prelude to launching a membership drive. It will also develop an educational Web site and plans to organize a conference.

Report by Lisa Paul

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