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---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/27/2000=
=20 07:25 AM --------------------------- "NW on Application Service Providers" <ApplicationService@bdcimail.com< on= =20 04/27/2000 03:30:09 AM Please respond to "Application Service Providers Help"=20 <NWReplies@bellevue.com< To: <vkamins@enron.com< cc: =20 Subject: Get ready for virtual businesses NETWORK WORLD FUSION FOCUS: MIKE JUDE and NANCY MEACHIM on APPLICATION SERVICE PROVIDERS Today's focus: Get ready for virtual businesses 04/26/00 Dear Wincenty Kaminski, ~~~~~~~~~~~~~~~~~~This newsletter=20 sponsored by Citrix ~~~~~~~~~~~~~~~~~ Citrix is the world leader in application server software that ASPs worldwide depend on to deliver mission-critical applications with enterprise-class reliability and control. Citrix enables you to reach more users, with more applications, in more locations - with record speed, greater predictability and lower costs. Find out why the world's leading ASPs depend on Citrix to stand out from the competition. Call 1-800-644-9358 or visit us at http://nww1.com/go/1187290a.html ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subscribe to the "Whitepapers Download" newsletter from Network World!! Keep up-to-date with summaries and links to the latest vendor-sponsored whitepapers on Network World Fusion. Subscribe to Whitepapers Download at http://www.nwfusion.com/go/wppromo.html ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Today's focus: Get ready for virtual businesses --------------------------------------------- By Mike Jude and Nancy Meachim The ASP model as it is currently formulated is not really viable in the long run. Though hosting applications has opened a world of possibilities and cost savings for end users, application service providers who simply host applications don=01,t have much to offer. They also have the problem of being the customer contact. If the network fails and customers can=01,t access an application, they blame their ASP, not the network provider. For these reasons, many ASPs are expanding to offer more value, such as delivering network services along with their applications. Enterprise Management Associates advocates this approach - but looking to the future, as analysts are supposed to do, we see a much longer value chain. Providing other services along with applications is one step up, but beyond that, we see a huge potential in the virtual space ASPs have created. We are already beginning to see pioneering companies exploring the possibilities. For example, Minnesota company Agiliti is building an online suite of applications with a consistent front end. This coordinated suite of business applications is accessed through third- party partners who provide customer care and support. The value that Agiliti offers is the integration and maintenance for a complete, business-enabling software infrastructure. In a sense, this is an online corporate back office. As ASPs evolve into full-service providers, more of them will offer service and support combinations similar to Agiliti=01,s. But what about the front end of the business, the product development side of things? We=01,ve found one ASP that has evolved quickly to become a full-service, front-end infrastructure provider, offering product development, fabrication and prototyping. Toolwire, a Silicon Valley start-up, provides a complete, integrated tool set for electrical engineers. This tool set incorporates state-of- the-art design and fabrication software, as well as online information and training in the latest tools and support from various electronic suppliers and fabricators. Toolwire=01,s vision is to provide a virtual space where engineers worldwide can collaborate on the design of advanced electronic devices. Through an extensive partner network, Toolwire provides not only tools but also collaborative space, processing power, training and supplier support. In a nutshell, the company sells a virtual corporation to any entrepreneur with a good idea. Ultimately, Toolwire expects to expand to incorporate the supply- and-distribution chain through its site as well. As e-commerce speeds up, a significant advantage is gained by reducing the latency involved in delivering new products to market. In the area of electronics, latency is often due to the acquisition of new tools to facilitate the design process. Toolwire=01,s approach dramatically reduces latency for start-ups by eliminating the need to invest in highly volatile and very expensive design tool sets. Likewise, Agiliti reduces latency by off-loading the IT infrastructure support from an enterprise. Breaking new ground, of course, carries with it the problem of definition. What do you call this new virtual workplace, which combines all the necessary tools to design, produce, market and deliver a product without the need for any physical infrastructure? (Agiliti and Toolwire haven=01,t reached this goal yet, but it is within their sights.) The label we=01,ve come up with is =01&virtual business service provider.= =018 This entity transcends the full-service ASP by not only providing access to the services and applications a company needs but also actually providing the entire company itself. Companies like Agiliti and Toolwire are commodifying the enterprise. The day is coming, very shortly, when an entrepreneur with a good idea will be able to sit down at a terminal; design a product; ship the specs to a fabricator; order components; plug into the appropriate accounting, billing and inventory systems; line up distribution channels, sales and marketing resources; and obtain financing. And the entrepreneur will be able to do all that without touching anything more physical than a keyboard. Welcome to the business in a box! To contact Mike Jude and Nancy Meachim: --------------------------------------- Senior consultant Michael Jude and research director Nancy Meachim are with Enterprise Management Associates in Boulder, Colo., (http://www.enterprisemanagement.com), a leading analyst and market research firm focusing exclusively on all aspects of enterprise management. Jude has over 18 years of experience in the telecommunications industry, most recently with US West, where he was a manager of public policy. Mike can be reached at mailto:jude@enterprisemanagement.com. Meachim focuses on e-business management. She is currently conducting a research study on ASP management that is due to be released in April. Nancy's email address is mailto:meachim@enterprisemanagement.com. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FOR RELATED LINKS -- Click here for Network World's home page: http://www.nwfusion.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Agiliti: http://www.agiliti.com/ Toolwire: http://www.toolwire.com/ Agiliti turns to resellers for new ASP service, Network World, 03/24/00 http://www.nwfusion.com/news/2000/0324agiliti.html Archive of Network World Fusion Focus on ASPs newsletters: http://www.nwfusion.com/newsletters/asp/ May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. Apply today at http://www.nwwsubscribe.com/nl ********************************************************* Subscription Services To subscribe or unsubscribe to any Network World e-mail newsletters, go to: http://www.nwwsubscribe.com/news/scripts/notprinteditnews.asp To change your email address, go to: http://www.nwwsubscribe.com/news/scripts/changeemail.asp Subscription questions? Contact Customer Service by replying to this message. Other Questions/Comments Have editorial comments? Write Jeff Caruso, Newsletter Editor, at: mailto:jcaruso@nww.com For advertising information, write Jamie Kalbach, Account Executive, at: mailto:jkalbach@nww.com Network World Fusion is part of IDG.net, the IDG Online Network. IT All Starts Here: http://www.idg.com Copyright Network World, Inc., 2000
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