Cable & Wireless launches ASP service for SMEs

NEWS Cable & Wireless is joining forces with Microsoft to set itself up as an application services provider (ASP) for small and medium-sized businesses (SMEs) worldwide. The venture will offer SMEs tailored IT services on a monthly rental basis instead of buy-per-seat software licences. Microsoft will provide the software for the service and the hardware will be provided by Compaq, who signed a $500m agreement with Cable & Wireless in November 1999. Sarah Skinner, European Internet analyst at Durlacher Research, said the market for ASPs is growing rapidly, particularly in the European SME sector, but claimed Cable & Wireless' focus had been, up to now, elsewhere. She told silicon.com: "Cable & Wireless has been slow to catch up on the ASP and Internet markets in Europe, but the SME market is predicted to be substantial, once the bandwidth issues have been resolved." She added: "The telephone company's position has been weak in Europe even as a network provider and subsequently the new venture could improve its performance." But John Delaney, senior consultant at research consultancy Ovum, claimed the announcement is more strategic. "Cable & Wireless is confronting the critics by moving into the ASP market. The company is in a unique position with global network coverage where the ASP product announcement is part of wider strategy," he said. Cable & Wireless claims the service will feature basic software applications as well as upgrades and security, storage and customer support facilities, which will be delivered from centrally located datacenters over an IP network. The service is planned to go live in UK in Swindon from September 2000, and will be eventually available over wireless networks as well as desktop PCs.