Asp software

A.M.REPORT; Tapping applications: Equant enters increasingly crowded ASP field - Equant to carry Microsoft software over its international network - Company

Equant, a company that started as a private network, moved into the hotly contested application service provider market last week, announcing plans to offer Microsoft solutions over its international network.

As with other carriers, the driving force behind Equant's entry was customer demand, said Laurence Huntley, executive vice president of marketing for Equant. The cost of software ownership is too expensive, and by outsourcing, companies can focus on their core business.

The company has a head start as an ASP and has data centers running in Atlanta, Boston and London, with plans to build seven more. With the new data centers, the company will have a fully synchronized and mirrored data infrastructure supported 24-hours.

Equant should be able to make the move from a carrier to an ASP with few problems, Huntley said. "We have the network. We have the data centers. And we have the people on the ground, so it should be a smooth transition."

Equant's international network should give it another advantage over smaller providers. It currently provides network services in 160 countries. "You can be an ASP, but that doesn't do much good if you don't have a network to serve it," Huntley said. "Our strategy is to sell both networks and applications. Because we have such a range of coverage, we can give our customers universal access as if it were on their own LAN."

Software providers likely will look at the ASP market in the same light and latch onto providers with robust networks. "They will be attractive to not only Microsoft but anyone else that needs the infrastructure," said Joanna Makris, senior analyst with The Yankee Group.

Not surprisingly, getting into the ASP business by touting network prowess is becoming commonplace. Others likely will follow, especially with more businesses looking to outsource their services.

"We are seeing ISPs and other service providers entering into the market, and they are doing it by leveraging their network and their international presence," Makris said.

The growing ASP market will give software providers such as Microsoft the ability to bring their applications to customers through partnerships with service providers.

"It is definitely opening up a whole new marketplace," Makris said. "Any software provider now has the ability to enter the ASP marketplace."