BT and Oracle launch ASP offensive

Apps on tap all across Europe...

By Aled Herbert, 25 September 2001 08:05

NEWS BT and Oracle are joining forces to offer the software giant's products throughout Europe via an ASP initiative. The project will be managed by Oracle and hosted by BT's Ignite service. Both companies said they hope to have their first customers in place before Christmas. Oracle European VP Sergio Giacoletto said the company expects that the majority of its software will be made available as a rented service within three to five years. The company's US software rental trial has 125 customers. Subscribers to the service will not stump up a one-off purchase price, but instead pay a monthly fee. The ASP model has been touted as the next big thing for software companies but has so far failed to take off. A study by Ernst & Young in June found that one of the barriers was that businesses don't trust ASPs to look after their data and business processes safely. However, Giacoletto said that as people increasingly use services such as Hotmail and internet banking, confidence in remotely hosted software and services will increase. Ernst & Young's research also discovered that a lack of independent security kitemarks for ASPs was holding back adoption of the model. Other concerns voiced by businesses included the ability of ASPs to keep services running during upgrades and repairs.

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