Sep 11th 1999: Pay-as-you-go ASP licensing from Citrix was one of several landmark channel announcements at this week's Citrix iForum conference in Orlando FL. Enterprise software vendor Great Plains named five big-name ASP partners, while startup Imago ASP revealed a volume distribution strategy for its application hosting services.

Former ISP and high-end web hosting provider Digex formally revealed its move into enterprise applications with the news that it has become one of five providers certified by Great Plains to supply ASP solutions in partnership with the vendor's reseller channel.

It joins existing Great Plains partners Futurelink, IBM Global Services, The Taylor Group and Telecomputing as the vendor's certified ASP partners. They will offer eEnterprise - the vendor's new name for its Dynamics application suite - as a hosted solution either direct to end users or for resale by accredited value added resellers (VARs).

The Taylor Group formally launched its ASP offering to coincide with the announcement. Exclusively focussed on Great Plains and Microsoft solutions, its Managed Operations programme - www.ManagedOperations.com - explicitly calls for implementation by local Great Plains VARs, working with the ASP.

Privately-owned Imago ASP Systems, based in Lenexa KS, announced it has signed UCSI, the leading US distributor of thin client systems, to distribute ASP services via its 1,500-strong reseller channel to home, home-office and small business users. UCSI resellers will sell and support the applications, which Imago ASP will charge a flat-rate fee for hosting on its servers. The ASP will also offer hosted desktop applications including Lotus 1-2-3 and WordPro, MS Outlook 2000 and SQLServer, and will host Office for users who provide proof of licensing, CIO Matt Carden told ASP News Review. Imago ASP is the first provider to announce a reseller-based strategy targetting the volume small business and home market, and currently projects a subscriber base of 1m by 2001.

Citrix broke new ground by announcing a pay-as-you-go licensing model for accredited ASPs who use its MetaFrame systems software. The announcement marked the long-awaited launch of the vendor's ASP partner programme. Participants in the iBusiness Service Provider scheme will pay licence fees to Citrix based on the average number of concurrent users each month.

While removing the upfront licence cost, Citrix has set a $50,000 charge for providers to join the iBusiness scheme, discounted to $30,000 for applications submitted before Nov 1st. This gives access to the 24x7x365 technical support service currently available to end-user enterprises from Citrix for a similar sum. Other features of the programme include support in forming strategic relationships with network service providers, application vendors and integrators, as well as technical advice, continuing training, and aids for sales and marketing. Applicants will have to meet strigent criteria before achieving accreditation, including published service level agreements offering 99 percent or better uptime.

Under the Citrix iLicence system, an auditing utility measures usage of MetaFrame and supporting tools for load balancing, installation management and resource management, and reports the payment to be made at the end of each month. The per user licence fee, which starts at approximately $15 per user per month, is discounted for larger user numbers, reaching $8 at the 10,000 user level. Averaging for concurrent usage in high-volume applications, which are normally used intermittently rather than intensively, the per user cost will typically fall to around $2, company officials said.

The iBusiness scheme also includes a separate network service provider programme for telecoms providers and ISPs, and an application specialist programme for consultants, independent software vendors, systems integrators and value-added resellers. Participants will be encouraged to use the ASP Central area of the Citrix site (to which ASPnews.com provides an edited news feed) to network with other members of the iBusiness programmes.