ASP on the rebound

Kate Mackenzie

MARCH 04, 2003

APPLICATIONS services are back after fizzling in the dotcom crash.

Microsoft, Macquarie Corporate Telecommunications and local streaming specialist e.Business are teaming up to offer hosted rental applications.

As the applications service provider model almost guarantees software licence compliance, Microsoft is hoping the new service will reduce piracy.

Customers, in turn, can circumvent some of the harsher provisions of Microsoft's unpopular Licencing 6 regime.

Businesses that did not commit to regular upgrades in exchange for discounts before last year's Licencing 6 deadline will be able to switch to subscription models, and rent new versions of Microsoft programs for no up-front cost.

Macquarie uses the e.Business Z!stream software, which streams parts of the application to the end user as they are required, unlike other software-as-a-service applications, which are often thin client technology such as Citrix or Terminal Server.

That made it cheaper than thin client systems, Macquarie hosted solutions general manager Glen Noble said.

Macquarie's Service Provider Licence Agreement with Microsoft enables it to charge customers a varying amount each month, depending on how many end users use particular applications.

Software licencing compliance was one of the big advantages for Microsoft, Mr Noble said.

"It can get them compliant. That's what Microsoft wants out of it," he said.

Z!Stream technology reduced the need for expensive infrastructure, making it cheaper than other hosted software products.

Although the SPLA was introduced in August 2000, Microsoft network solution specialist Phil Meyer said he was overwhelmed, as demand for the program had more than doubled in the past year.

"I haven't got enough time to deal with them all. We're putting on more people to deal with the demand, and educating the market more broadly," he said.

There were about 25 partners in Australia.

In a webcast scheduled today by Macquarie, Microsoft and e.Business, Mr Meyer will discuss the licencing compliance aspect of using services such as Macquarie's.

ASP was gradually gaining ground after a difficult start, Gartner enterprise analyst Rolf Jester said.

The market was likely to fragment among many providers, he said.

http://australianit.news.com.au/common/search_form_handler?SEARCH_ACT=display&story_id=6069960&TotalPage=1&searchTermIMT=%28z%21stream%29&pageNum=1&resNum=20&searchLog=20030502112632-2039&searchBy=date&Intro=No