FutureLink, a US-based application service provider (ASP), has
became the latest supplier to try to crack UK users' reluctance to
rent their software online.
Hooman BassirianFutureLink's European arm last week unveiled three separate
packaged service lines which it will market through its channel
partners in an effort to capture a slice of the ASPmarket.
The move pitches the company against existing ASP players such
as NetStore and Esoft. Futurelink's flagship product is
OfficeConnect, which makes Microsoft's Office Professional suite
and Microsoft Exchange available for a monthly fee.
Other product lines comprise an application hosting business and
AppConnect, which provides users with online access to core
business management applications such as billing and accounting
packages and enterprise-wide products such as enterprise resource
planning software and customer relationship management
software.
Yuri Pasea, managing director of FutureLink Europe, said, "We
think that one of the key benefits [of ASPs] for SMEs is in
enabling companies to budget more accurately for their IT needs and
minimise the impact on cash-flow of purchasing expensive IT
hardware and software in one lump sum."
UK users have so far shied away from using ASPs, citing mostly
concerns over security, the reliability and speed of using the
Internet, and unresolved problems with getting out of their
existing software licences.
But Euan Davis, an analyst with research firm IDC, who spoke at
FutureLink's London launch, said he expected the UK market for ASP
services to grow from $3.5m (£2.3m) in 1999 to $322m by 2004.
He predicted that improvements in bandwidth technology, the
continuing shortage of skilled IT staff would help boost the uptake
of ASP services by UK companies.