AS@P - A Weekly E-Newsletter from ASP Insights
Breaking ASP News Stories ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ * Industry Watch * Jamcracker Maps Out ASP-Focused Channel Program * ASPs Slowly Making Inroads Among Corporate Officers <<< INDUSTRY WATCH >>> * 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. <<< BREAKING NEWS >>> * JAMCRACKER MAPS OUT ASP-FOCUSED CHANNEL PROGRAM 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." * ASPS SLOWLY MAKING INROADS AMONG CORPORATE OFFICERS 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 decisions. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AS@P - A Weekly E-Newsletter from ASP Insights If you would like to unsubscribe, visit our Web site at http://lists.101com.com/unsub_login.htm. To change your delivery address visit http://lists.101com.com/ChangeEmail.asp?FORM=NLU&T=EM If you have any questions regarding ASP Insights, please send an e-mail to Matt Migliore at [email protected]. For sponsorship information, please contact Cliff Mulcahy at 215-643-8077 or via e-mail [email protected]. 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