By Barbara Morgan, 3 June 1999 15:01
NEWS Microsoft has launched a pilot scheme to offer hosted BackOffice applications over the Internet. The programme reinforces a growing trend towards outsourcing business applications, hosted by Internet service providers (ISP) and application service providers (ASP). One of Microsoft's first partners in the programme, FutureLink Distribution, will provide hosted NT Server, SQL Server and Exchange services. The firm will offer contracts ranging from one month to two years in length, with fees charged via a subscription access licence. FutureLink CEO, Cameron Chell, said: "This is a pivotal development in the licensing of software for the ASP industry." He claimed the pilot scheme will have "far-reaching effects throughout the entire software industry". But Dwight Davis, analyst at Summit Strategies, said Microsoft has been slow to enter the market for Net-based applications hosting, and lags behind other infrastructure software vendors such as Lotus and Netscape. Davis said: "Microsoft doesn't have a high degree of confidence that it will be able to maintain the same degree of margins in this market. It will get significantly more bullish if it can convince itself that more money will be made than lost via hosted business applications."
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