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AS@P - A Weekly E-Newsletter from ASP Insights
Monday, July 24, 2000
Subscribe at http://lists.101com.com/

Breaking ASP News Stories
* Industry Watch
* Jamcracker Maps Out ASP-Focused Channel Program 
* ASPs Slowly Making Inroads Among Corporate Officers


* Leading ASP pioneer Corio (San Carlos, Calif., NASDAQ: CRIO) went 
public on Friday, July 21, 2000. Priced at $14.00 per share, Corio 
opened trading at $21.75, falling to $17.00 before late day trading 
pushed the stock back to near $20.00. Corio closed at $19.69 with over
$14 million shares traded. Other publicly traded ASP stocks didn't fare
so well with USinternetworking (NASDAQ: USIX) and NaviSite (NASDAQ: 
NAVI) each down more than 8% today. Corio delivers an integrated suite 
of top tier business applications over secured private or Internet 
connections for a low monthly fee.

* Microsoft unveiled its ASP strategy at its Fusion 2000 conference in 
Atlanta last week. Although pricing for the new licensing will not be 
unveiled until August 1, Microsoft did say that it will be licensed to 
ASPs on a monthly, pay-as-you-go basis, either per user or per 
processor. Microsoft unveiled a series of programs aimed at ASPs, such
as the ASP Service Delivery Initiative, which is designed to foster 
relationships between ASPs, hosting providers and Microsoft resellers.
Another program, the ASP Certification Program, will recognize ASPs 
hosting Microsoft-based solutions to specific standards.

* Ventera Corp. (McLean, Virg., www.ventera.com), an IT professional 
services firm, has expanded its e-business services offerings to 
include managed Web hosting. In order to keep up with the growing 
demand for managed hosting, Ventera now offers comprehensive Web 
hosting services for e-commerce and ASP applications at a tier-one 
data center in Northern Virginia. Ventera builds and maintains the 
backbone of e-business and IT operations, including application 
development, system integration, and infrastructure.

* PricewaterhouseCoopers (New York, www.pwcglobal.com), one of the 
world's leading professional services organization, is entering the ASP
market as the company announced it has been certified by SAP as an ASP.
Through the certification, PricewaterhouseCoopers will deliver a wide 
range of SAP solutions via the ASP model for its clients in areas such
as consumer packaged goods, high-tech, and retail.

* Secure Computing (San Jose, Calif., www.securecomputing.com) has 
signed an Original Equipment Manufacturer (OEM) agreement with Hewlett-
Packard Company. Under the terms of the agreement, Secure Computing's 
SafeWord authentication application is to be resold as a standard 
feature of HP's e-utilica instant e-service solution for Application 
Service Providers (ASPs). HP's e-utilica is a pre-integrated solution
that enables ASPs to offer businesses instant access to design 
collaboration applications and scalable compute capacity on a pay-per-
use basis, keeping the information technology overhead low and 
providing a secure platform for e-business. Secure Computing's 
SafeWord provides positive identification and granular access controls 
allowing only the right people access to the information and resources 
they have permissions for.

* Interactive Intelligence (Indianapolis, www.ININ.com) a leading 
developer of multi-channel interaction management software, announced 
that Interactive Portal (Indianapolis, www.interactiveportal.com), a 
new Application Service Provider (ASP), has initiated service using the
Interactive Intelligence Service Interaction Center(TM) (SIC) product. 
SIC is designed to allow ASPs, CLECs, and ISPs to deploy large-scale, 
subscription-based communication services including voice mail, unified
messaging, follow-me/find-me, call screening, interactive voice 
response (IVR), conferencing, and e-mail management.  Interactive 
Portal will use SIC to extend their service offerings. 

* MessageMedia Inc (Boulder, Colo., www.messagemedia.com), a provider 
of strategic messaging solutions and services, announced that they 
signed six additional ASPs in the second quarter of 2000, bringing the
total to 18 since launching its worldwide ASP marketing program. Under
the ASP program, application service providers have the option to offer
e-messaging services under their own brand or under the MessageMedia 
brand. ASPs are required to recognize opt-in and permission rules 
specified by MessageMedia's commercial e-mail guidelines. The ASP 
provides all front-line support to client organizations, with 
MessageMedia providing back-line support to the ASP. 

* Enterprise anti-virus and Internet content security provider Trend 
Micro's (Cupertino, Calif., www.antivirus.com) InterScan VirusWall 
Internet gateway virus protection software has become one of the first
thirteen products and the only antivirus product to achieve Sun 
Microsystems' SunTone Application Certification for deployment in ASP 
environments. The SunTone Certification provides a 'seal of approval' 
indicating that a company's products demonstrate the high delivery 
standards necessary for successful deployment in an ASP environment.



By Jim Martin

Jamcracker, Inc. (Sunnyvale, Calif., www.jamcracker.com), a Web-based 
workspace for IT and business applications, services, and support, 
recently unveiled a channels program that will enable business 
partners to instantly enter the ASP market.

To facilitate this move, Jamcracker's channel program will bring 
together a community of business technology service providers, who 
will complement Jamcracker's direct sales force.  Through the 
combination of business technology service providers and its direct 
sales force, Jamcracker will be able to provide companies looking to 
quickly move into the ASP space with the training and support needed 
to sell and integrate best-of-breed ASP solutions. 

"We believe the investment we are making to develop a Jamcracker 
Practice will not only benefit our customers, but also enable us stay 
competitive as the demand for ASP services grows," said Ronald Kramer,
chief executive officer, All Computer Solutions. "Jamcracker has 
demonstrated a huge commitment to helping us be successful by giving 
us access to sales and technical training that isn't available 
anywhere else." 

The Jamcracker Channels Program consists of two channels programs, 
Jamcracker Explorers, and Jamcracker Certified Pioneers. 

Jamcracker Explorer is designed for independent consultants, venture 
capitalists, ASP business partners, and financial consultants who are
looking for a low-risk entry into the ASP market. Through this 
program, any member that secures a deal based on Jamcracker services 
will receive a commission.

Jamcracker Certified Pioneers targets e-business consultants, systems
and solutions integrators, telecommunication companies, and value 
added solution providers. Upon receiving advanced sales certification, 
these members will be paid a premium commission on Jamcracker sales. 
While Jamcracker handles the 24X7 technical support, the pioneer 
members must maintain and grow the customer relationship.

There are two levels of Jamcracker Certified Pioneer membership. 
Sales Certified Pioneers are channel partners who are trained and 
certified to sell Jamcracker services, but do not provide 
implementation or integration services. Premier Certified Pioneers 
are channel partners who have completed advanced training so they 
can sell and implement Jamcracker services.

"The web-based applications era has ushered in a new breed of 
partnerships," said Feyzi Fatehi, senior director, business 
development for Jamcracker. "Our channel philosophy reflects the 
dynamic nature of doing business as a web-based IT services provider,
and these programs were designed specifically to help our partners 
succeed in this growing market." 


By Jim Martin

One of the biggest obstacles facing the ASP industry in its efforts 
to move into the mainstream is a lack of recognition and awareness 
of not only the public, but also of personnel with a say in IT 

In their most recent report on the market, entitled, "ASP Adoption 
by Market Segment: C-Level Executives," IDC (Framingham, Mass., 
www.idc.com) surveyed 400 U.S. corporate officers 
(CEO/CFO/COO/SVP/VP) with influence over technology decisions. The 
survey indicated that the ASP model is slowly but surely beginning 
to make inroads, as more than half of the respondents were familiar 
with the term ASP. However, only six percent of the corporate 
officers said they had 'detailed knowledge' of the ASP model.

"Despite the coverage in the global trade and business press, the 
awareness levels are still very low, particularly within smaller 
companies. ASPs have been busy building partnerships and 
infrastructure," says Clare Gillan, group VP of application and 
information research at IDC. "To retain the momentum and interest 
they have gained within the IT, investment, and press communities, 
they must turn their attention and resources to educating customers 
and proving that vision."

After further explanation of the term, just over one/third of the 
respondents said they would consider using an ASP, an increase of 
over 11 percent to a similar survey four months earlier. Of 
particular interest was the fact that corporate officers at large 
companies were more likely to consider using ASP services than 
those at small and medium sized companies. 

The IDC survey also showed that the improvement of total cost/
performance of IT investment and a shorter implementation cycle 
were the two most important factors in making the decision to 
choose an ASP.

Other significant findings include: seven out of 10 large sites, 
almost double the overall average percent, expect to pay more for 
better quality services from an ASP than in-house services could 
offer; most companies with a preference would rather pay for ASP 
services on a transaction volume; and the Internet was cited as the 
preferred access method for small and medium-sized companies, while 
large companies preferred a private network.

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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 
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