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AS@P - A Weekly E-Newsletter from ASP Insights

AS@P - A Weekly E-Newsletter from ASP Insights
Monday, July 17, 2000
Subscribe at http://lists.101com.com/

Breaking ASP News Stories
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* Industry Watch
* Progress Enhances ASPEN 2000 Through New Services Group
* Phillips Group Says Large Companies Will Drive ASP Market


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<<< INDUSTRY WATCH >>>

* QUAD Research (Irvine, Calif., www.quadresearch.com) recently 
introduced a cost-effective breakthrough program for ASPs, designed to
enables ASPs to quickly bring up their first wave of customers and 
quickly start generating revenue. This new program, entitled "ASP 
Quick Start," offers a turnkey single source, single monthly solution 
to meet all of a start-up ASP's hosting requirements for the first 90 
days of operations. After the 90th day, the program then offers the 
large-scale resources of Metromedia Fiber Network (MFN) and its 
AboveNet Communications subsidiary in combination with QUAD Research's
hardware platform for long-term co-location. 

* Business management and accounting software provider Sage Software, 
Inc. (Irvine Calif., www.us.sage.com) will offer its Sage MAS 90 and 
MAS 200 product lines, along with its Sage Enterprise Suite, via the 
Internet through an ASP agreement with IBM. Through the agreement, IBM
will host Sage's products in its hosting facility in Rochester, N.Y. 
Sage will create and maintain the ASP infrastructure and utilize its 
reseller network to provide its solutions to customers. 

* Data Return Corp. (Dallas, www.datareturn.com), a global provider of
managed hosting services for the Microsoft Windows 2000 platform, has 
launched The Catalyst Partner Program. This new program, which targets
ASPs and solution providers focused on the Microsoft platform, is 
designed to expand business opportunities for Data Return's partners, 
providing a fully managed infrastructure to deploy customers' ASP and 
e-business initiatives. ASPs and solution partners can enroll in Data 
Return's Catalyst Partner program and will receive benefits based upon
specific levels of participation.

* FreeMe, Inc. (Austin, Texas, www.freeme.com) has launched a new 
applications platform designed to enable ISPs to deliver ASP services. 
In launching the new U-Platform, the delivery expert also announced 
that more than 40 ISPs with 1.5 million customers have signed up for 
its web-based services. The U-Platform scalable platform allows 
service providers to offer end users a single source for multiple, 
mission-critical applications, providing ISPs with a simple way to 
procure, distribute, secure, manage, support and bill applications 
offered to end customers.

* Further expanding its ASP delivery channel, Business intelligence 
provider Cognos (Burlington, Mass., www.cognos.com) is working with 
Microsoft Corp. to drive business intelligence to the ASP market with 
Microsoft .NET. Cognos is a Level One sponsor of this program. Cognos 
business intelligence combined with Microsoft Windows DNA 2000 
provides ASP business partners and combined customers with a unique 
solution set for e- business initiatives.

* IBM and Alcatel (Paris, www.alcatel.com), a leader in integrated 
end-to-end voice and data communications solutions, have announced an
agreement to integrate their information technology and communications
expertise, offering network solutions to ASP, Carrier and Enterprise 
customers. The companies will focus on Internet data centers, the 
technology hubs that links IT infrastructure, an area of leadership 
for IBM Global Services, with networking infrastructure and 
communications, where Alcatel is a recognized leader. The two 
companies estimate the current industry-wide market potential for the 
building of Internet data centers could exceed $100 billion during 
the next three years.

* AT&T Canada (Toronto, www.attcanada.com) announced the expansion of 
its Internet Data Centre Services (IDCS) with a new Internet data 
center in Vancouver and increased space in two of its existing 
Toronto facilities. The AT&T IDCS provides a reliable and secure 
facility for hosting business Web sites and server operations, or for
setting up operations for an ASP.


<<< BREAKING NEWS >>>

* PROGRESS ENHANCES ASPEN 2000 THROUGH NEW SERVICES GROUP

By Jim Martin

Continuing their efforts to provide a roadmap for ISVs who want to 
become players in the growing ASP market, Progress Software Corp. 
(Bedford, Mass.) recently announced the availability of professional 
services to strengthen its ASP Enablement (ASPEN) 2000 program. 

The ASPEN 2000 program provides technology, services, business 
planning assistance, and partnerships to assist ISVs in quickly 
transforming Progress-based applications into ASP-enabled 
applications. Since its inception, the ASPEN 2000 program has grown 
to over 200 members.

With the addition of a new professional services group, Progress 
will be able to provide end-to-end consultation and support for ISVs
who want to quickly deploy their Progress-based applications on the 
Internet.

The professional services offering will be comprised of five 
specific phases, including:
- Assessment-review of current application and analysis of technology 
options for moving to ASP deployment
- Planning-recommendations about ASP enablement concepts and plans to 
prior to development
- Development-assistance in ASP application or creation
- Deployment-installation of ASP-enabled applications at ASP hosting 
partner
- Support-24 X 7 technical support

"Progress Software is dedicated to fully supporting its ISVs who are 
evolving into ASPs," says Bob Palumbo, VP of ASP business development.
"Current and future ISVs will have the support and assistance of 
Progress Software throughout the process of developing and deploying 
an ASP business application. We are committed to helping our ISVs get 
their applications to market in the most efficient manner possible. 
With our ASPEN services, customers can be confident that they are 
bringing the highest quality ASP applications to market as quickly as 
possible."


* PHILLIPS GROUP SAYS LARGE COMPANIES WILL DRIVE ASP MARKET

By Jim Martin

Based upon their most recent study on the ASP market, The Phillips 
Group (Parsippany, N.J.) predicts the U.S. market for ASPs will grow
from $1.1 billion to 13 billion in the next five years, with large 
businesses accounting for almost 70 percent of the growth.

Upon its inception, many experts initially thought the ASP market 
would be mainly geared and suited for small and medium sized 
businesses. That thinking has started to change, however, as large 
corporations have begun to take a closer look at the ASP model.

"Very large companies, those with 2,500 or more employees, 
accounted for only 21 percent of the users of these internal-oriented
ASP applications in 1999," said Terry White, a senior director of The
Phillips Group and lead analyst for the study. "But this segment is 
projected to reach 55 percent of ASP users by 2004. ASPs presently 
view small and mid-sized businesses as the primary target market for 
their outsourcing services."

Consistent with the results of similar studies by other analyst 
groups following the market, Phillips Group says e-commerce will 
become the most popular hosted application, representing 52 percent 
of ASP revenue by 2004, compared to 28 percent in 1999.

According to the report, only four percent of large companies with 
500-10,000 employees who participated in the study are currently 
using ASPs for e-commerce. However, more than 70 percent of those 
companies indicated they were very likely to use an ASP for e-commerce
within the next four years.  

To penetrate the large enterprise market, Phillips Group says ASPs 
have to demonstrate strong service and support and offer application-
specific Service Level Agreements (SLAs). "These were the two most 
important decision criteria that large businesses cited for selecting 
ASPs," according to White. These larger firms will utilize ASPs for 
applications such as E-Commerce and collaboration, because the ASPs 
have the expertise in these areas that the enterprises lack. That will
enable faster implementation of these leading edge applications. 

The study analyzed the services and marketing strategies of 25 leading
ASPs, including those focused on large businesses such as Qwest 
Cyber.Solutions, Sprint, and Capstan.


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AS@P - A Weekly E-Newsletter from ASP Insights

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Copyright 2000 101communications LLC. All rights reserved. The information contained in ASP Insights may not be published or otherwise distributed without prior written consent from 101communications.

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