EzineECMgt.com: Jul2000: Volume 2, Issue 7 - ASPs Expand Their Offerings and Customer Base ECnow.com
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July 1, 2000 *Over 4,000 subscribers* Volume 2, Issue 7
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View this Issue: http://ecmgt.com/Jul2000

Subject: Wireless Applications Become More Common

Aug'00 Survey Question:

Thank you for your comments, suggestions and responses to our survey question.  Please keep them coming.  Let us know what you think by e-mailing us at mailto:ecmgt.comments@ecnow.com. We currently have over 4,000 subscribers.  If you like what you read, please let your friends, clients and co-workers know about our free newsletter.      

Our August issue deals with dynamic pricing. With the rapid adoption of business models from Ebay, Priceline and others, we would like your opinion on the following:

  1. Do you feel that dynamic pricing will continue its rapid expansion into all industries? If no, please explain. If yes, please elaborate.
  2. If you are aware of an exciting implementation of a dynamic pricing model, can you send a paragraph or two of what has been done.
  3. Regarding the future, what do you foresee? Will this trend disappear? Or will everything we buy (whether as an individual or a company) be negotiable and dynamic?

To respond to this question, please go to http://ecmgt.com/bulletinboard.htm or send e-mail to mailto:ecmgt.survey@ecnow.com. When you send your response, please list the city and country where you are located. If you want us to publish your name, company, and title please expressly state that desire.

Thanks for taking the time to respond.

MANAGEMENT PERSPECTIVE

ASPs Expand Their Offerings and Customer Base
by Mitchell Levy
Executive Producer, ECMgt.com

It was just two short years ago that the acronym ASP first appeared on the horizon of leading market research firms. Less than a year later, major data centers including Exodus, Navisite, and AboveNet were planning their revenue growth on professional services to support Internet firms who host business applications including Microsoft Office, Siebel sales automation, and ERP applications from SAP and PeopleSoft.

Related terminology:

What is an ASP?

Exactly what is an ASP? Essentially, an ASP is a vendor who makes applications available on a subscription basis. An application service provider manages and delivers application capabilities to multiple businesses from data centers across a wide area network. ASPs give customers a viable alternative to procuring and implementing complex systems themselves. In some cases, ASPs even provide customers with a comprehensive alternative to building and managing internal information technology operations.

Value proposition of an ASP:

The value proposition of an ASP is simple: a hosted and managed solution, often custom engineered to provide rapid implementation. ASPs often provide process support, in essence appearing to be a 24/7 IT service bureau. ASPs like Corio and Oracle can provide effortless progression to each new version of the applications, which now appear as a continuum of evolution and (sightless) improvements, with no incremental jumps in the learning curve. This creates significant cost savings for customers, allows easy support, and provides an environment for simplified upgrades and future applications additions. ASP customers also are able to more precisely control the total cost of technology ownership through scheduled payments, rather than having to make large capital equipment investments with and manage complicated depreciation schedules.

History of ASPs:

The first ASP implementations were not recognized as such; these were our our email services provided by ISPs, and later the web hosting services that accompany most ISP offerings. Electronic commerce packages, which once were the domain of complex solutions installed and configured on custom built servers and hosted in co-location centers, are now being offered by CSPs - ISPs acting as Commerce Service Providers. In the last year, the majority of tier-one ISPs have purchased complete offerings from Intershop, Open Market, and Mercantec, and re-licensed them to subscribers. In addition to remote hosting, these solutions were configurable through a Web browser, making set-up, configuration, and maintenance much easier.

Where they fit:

Today there are over 500 ASPs who are providers of hosted applicationsand managed services, and facilitators of complete end-to-end business solutions. BSPs (Business Service Providers) now act as virtual business partners that provide choices regarding how software applications are managed and delivered. Oracle now offers its own ASP solution for ERP services, hosting it along with the Oracle 8.i software rather than selling directly. Corio hosts both SAP and Peoplesoft ERP systems as a managed business solution, rather than simply timeshare on a complex application framework.

New ASP Solutions:

But ASPs offer common solutions, where timeshare is the working model. Microsoft partnered with Corio to offer its complete Office solution to large enterprises, saving in cost of installation and support. More importantly, customers can pay based on measured use, rather than having to pay high up-front fees for thousands of independent workstations. A new class of ASPs offering network storage (SSPs) gives firms network access to unlimited storage on a pay-per-use basis, easing rapid storage demands of enterprise intranets. Seagate announced an alliance with HP a year ago to integrate its network storage solutions with HP's e-services offering. TurboTax, known for its income tax workstation software, made a decision to become a completely online service, and has a goal of processing 80% of all US tax returns online by 2007.

Free ASPs:

More recently, Internet high flyers such as Hotmail and Geocities became household words as free ASP services became adopted by the majority of email and web hosting sites. Today, over a dozen free e-commerce ASPs exist, with clustered business packages offered to complete the web store presence. Free B2B service now include Internet fax, voice mail, virtual meeting centers, and calendaring services.

Role of the Data Center:

Forward-thinking co-location firms Exodus and AboveNet were early to recognize the need to support ASPs with more than just world-class data center space. Exodus, which played an active role in the early formation and guidance of the ASP consortium (http://www.aspindustry.org), recognized the need for professional services to support ASPs with database and infrastructure engineering, advanced monitoring, failover, and data back-up services. Exodus created a services unit expressly to help ASPs grow as e-businesses, and today almost 25% of Exodus' revenue is derived from professional services.

The evolution of the model now includes ASPs connected to other ASPs to offer building blocks of complete e-business solutions; desktop and messaging, financial management, Customer Relationship Management, procurement, human resources, and business intelligence. Two data center firms to watch here are Navisite, a CMGI company, and Corio, both operating in California.

Navisite was early on the scene in clustered ASP offerings, but wasn't originally recognized as a provider of such. The CMGI investment approach has been to acquire Internet firms and merge their core competencies inside their data centers. Navisite offers high end web hosting, server and database management services, and combines them with an ad serving engine all under one roof. NaviSite also offers wholesale ASP services to ISV partners, who in turn can offer this software as an application service to their members. From multimedia applications to online catalogs to web tools, ISV partners offer a diverse array of application services, becoming a "downstream enabled" CSP by virtue of NaviSite's services.

Corio has gone far beyond the first generation ASP model of simply reselling and hosting a point application. Corio brought together industry-leading applications for each functional area across the enterprise, and offers them as a fully integrated solution over a secure network, for a monthly fee. In order to offer this to customers in a supportable and replicable way, Corio provides the solutions from a common technology platform. Integrations, customizations and other technology features are written once and deployed everywhere, using their Orion™ platform.

Internet Computing, the n-tier e-business model, and the Future of ASPs:

Oracle invented the Internet Computing Model, and more lately has joined firms including IBM to push n-tier computing, which uses "middleware" to connect Web and application servers to back-end legacy systems. Both Internet computing and the n-tier architecture have extended the reach of ASP technology; starting from a Web / application server, the ASP can now reach deeply into legacy systems of large enterprises, or through EIA (Enterprise Integration Applications) to interconnect business applications from any company to any other company. In so doing, a fluid system of architectural technologies creates the foundation for business process at the IP layer. This forms the basis for interconnected ASPs, an ecosystem for the next generation of e-business. (The ecosystem concept is practically in the public domain).

Creating new business models:

ASPs have risen far past being service providers, by creating custom offerings that encompass the complete business needs of both brick and mortar and Internet companies They offer the ability to create a completely virtual business where everything is outsourced, and companies can be launched with little more than brand, patents, and vision. ASP packages for ERP and supply chain, manufacturing (MRO), and financial management offer any company in a supply or value chain the ability to participate in engagements of any length, simply based on business rules and availability of physical resources. With the ability to inter-link and integrate electronic commerce applications through ASPs like Corio and NaviSite, the future of the digital economy will be defined by invention of business models, not automated business process.

Growth

The ASP consortium, founded a little over a year ago, started with 90 charter members, and has grown to over 400 companies today. It will probably have over 1,000 members by the end of 2001. The ASP market itself may grow to include all "shrink wrap" packaged offerings, i.e., Microsoft Office and TurboTax, within 5 to 10 years, replacing half the desktop and workstation applications in home, SME, and enterprise markets.

Predictions

Just as Web hosting has become a function that is more commonly outsourced than not, complicated and mission critical business applications such as ERP systems are expected to be outsourced more often than not by 2005. More importantly, almost 80% of new ERP implementations will be hosted by ASPs such as Corio and Oracle. The real growth could be the 8 million small businesses that will require digital connectivity to the business processes and rules of suppliers and customers as the Fortune 5000 companies migrate to a completely digital platform, and require everyone in the value chain to participate. Though the ASP market and model is still relatively new, computer industry analysts foresee rapid growth and multi-billion-dollar annual sales within the next few years. But as industry leaders like NaviSite, Exodus, Corio, Oracle, IBM and HP have shown, the real contribution of the ASP may be in its nexus of the digital ecosystem.

URLs

 

Let me leave you with a few of my favorite quotes this month:

***

I am based in Taiwan and work the Asia Pacific region. I do not see much of an increase towards ASP's for Foreign companies. The older senior management just do not "get it"... Why buy, maintain and support what you can lease. The forecast costs are fixed and you do not have to support a software team.

(David Hemmings, President, Global Stallion Ltd., TAIWAN)

***
In a way, it's a throw back to the days when 'bureaus' would rent time and space on mainframes. The software is a LOT different, but the concept is not new.

(K.G., Silicon Valley, California, USA)

***
Many companies, large and small, are beginning to consider and use ASPs. The value is particularly high for companies with distributed workforces and those who want to track and manage their software and IT services more efficiently.

(Veronia Williams, Founder, DiscoverIT)

 

I hope you enjoy this eZine.

See you in cyberspace,

Mitchell Levy

Executive Producer, ECMgt.com <http://ECMgt.com>
President, ECnow.com <http://ecnow.com>
Founder and Coordinator, SJSU-PD ECM Certificate Program <http://ecmtraining.com/sjsu>
Chair, ECMsym.com ECM Symposium (Oct 4-5, 2000) <http://ecmsym.com>

 

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The E-Commerce Management (ECM) Symposium held at Comdex Spring (Chicago, IL, April 17-18, 2000) was a remarkable success. The next ECM Symposium will be held in San Jose, California on October 4-5.  There are over 30 of the top ECM practitioners in the world sharing their views on what works and doesn't work. Seats are now on sale, but are limited by the venue. Did miss your opportunity to be at the beginning of this industry setting event. Learn more at register online at: http://ecmsym.com 

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CyberSummit 2000 Conference

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FEATURE ARTICLE

The Evolving ASP's: The Right Track in the "Internet-time" Environment
 Paras Gupta
 CEO and co-founder, @Manage (www.atmanage.com)

 

The e-commerce entrepreneur operates in a business environment that would seem like science fiction to business leaders just a generation or two ago. "Warp speed" barely begins to describe the level of responsiveness and expectations levied on the enterprise by customers and investors. "Friction" is considered a four-letter word. The enterprise is forced to deploy rapidly and robustly, offer seamless integration, and provide superior customer service and reliability -- lest it vanish into the black hole of would-be e-ventures

E -businesses have a very real dilemma. To position themselves strategically, they need to focus on their core competencies. However, they now must also execute flawlessly and provide superior support, which they can only do with strong application capabilities and a sound IT infrastructure. For an enterprise to develop these critical capabilities in-house, it must pay hefty software license fees, attract and retain hard-to-find IT professionals to install and maintain the software, and build and maintain the IT infrastructure. This all requires a lot of time -- arguably the scarcest resource of all. The sad truth is that the demanding capital, HR and time-to-market requirements put these critical capabilities fiscally out of reach for many e-businesses, particularly small and mid-sized enterprises. It's a classic Catch-22: the company can't afford to make the investment, but also can't afford not to.

So what is an e-business to do? The solution of choice for many companies has been to hire application service providers (ASPs) for their software application needs, and other highly evolved ASP categories such as management service providers (MSPs) for their IT infrastructure management needs.

The ASP Industry Consortium defines an ASP as an organization that "manages and delivers application capabilities to multiple entities from a data center across a wide area network (WAN)." Basically, an ASP manages and delivers software and/or services in an efficient and scalable model in which companies essentially rent access to software over the Internet or a WAN for a monthly or "pay-as-you-go" fee. The ASP owns the software license and leases access to the application to its customers.

Most ASPs offer packaged software applications, systems implementation and integration, data centers and connectivity, and application monitoring and support. Compared to in-house solutions, the ASP approach has lower front-end investment requirements and more predictable costs, making these services viable for small and mid-size businesses. Some ASPs provide these services completely online, bringing the costs even lower.

If leading market research proves to be correct, the ASP business model will continue to grow at a tremendous rate. Forrester Research projects the market for application hosting will reach $11.3 billion in 2003. Still other forecasts predict the ASP market will reach $20 billion in 2003. Undoubtedly this kind of growth will further spur the evolution of the ASP.

But it's already evolving. One of the latest trends to emerge in the ASP market is the management service provider, or MSP. The MSP is based on the ASP model, but goes a step further by taking on the added responsibility of actually managing an enterprise's IT systems.

This is critical to e-businesses, which must constantly know the status and performance level of their information resources -- everything from identifying Web site problems before their customers do, to ensuring that company vendors are performing up to their service-level agreements. If they fail to stay on top of their information systems, the costs can be staggering. The October 1999 issue of this publication estimated that enterprise customer downtime costs e-businesses a whopping $13,000 per minute, on average. This figure underscores just how critical it is for e-businesses to be able to instantly identify when they have IT problems, and to subsequently troubleshoot, isolate and fix those problems with minimal disruption to service. An e-venture gets few chances to prove its reliability to customers before it completely loses its competitive edge.

Once again, the Catch-22 of developing infrastructure capabilities in-house applies. But businesses are discovering that having an MSP take over responsibility for monitoring, measuring and reporting on the company's servers, networks and applications can allow the business to fully focus on its core competencies, while still maintaining control at the wheel. According to Gartner Group analyst Stephen Elliot, who coined the term "MSP", this is a good strategy for companies that want to gain control of their internal IT infrastructures.

Benefits that MSPs offer their customer companies include comprehensive reporting on IT resources and quick isolation of problems that arise. This ensures optimal availability of IT resources within the company and externally to its customers. MSPs also provide companies with the advantages and stability of an ongoing, long-term relationship, married with a fresh, outside perspective

Stephen Elliot predicts the reliance on MSPs will continue to increase, driving the MSP market to reach $2 billion by 2003. As outsourcing of applications and IT systems management through ASPs/MSPs increases, the affordable access these solutions offer will increasingly provide e-ventures with a competitive capability, regardless of enterprise size. But as in any business, not all ASPs and MSPs are created alike, and it pays to do your research. Here are some things to consider when selecting an ASP or MSP for your e-business:

The MSP is probably your future. Look inside your company and ask yourself, are we a technology company making technology work inside and out side our company. Or are we a business focusing on our core competencies and allowing someone else to focus on technology: their core competence.

*Paras Gupta is CEO and co-founder of @Manage (www.atmanage.com), a management service provider headquartered in Sunnyvale, California. Gupta, a former senior analyst with Exodus Communications, was also co-founder and CEO of the highly successful Unify Consulting Group.

 

READER COMMENTS

Our bulletin board allows readers to comment on trends and issues throughout the month. Please stop by to add your comments and see all the responses at http://ecmgt.com/bulletinboard.htm

Question of the Month

The topic for July is ASP Proliferation

Selected Answers of the Month

***
The concept of the ASP has gone full circle. From the 60's and 70's Service Bureau's to today's ASP, this concept is back and is definitely is expanding. Our State legislature just approved State sponsored funding for the construction of a super data center designed to offer ASP services for application hosting. Our company now offers our product via our server and the Internet, to small dealers who are not able to invest in hardware networks, but need the functionality of our software product. I see this trend expanding to the point where the majority of our software users will eventually want to take advantage of the ASP concept. The ASP concept can reduce overhead, provides a solid disaster recover plan, insures adequate bandwidth utilization, and focuses the user on the application, not his network, thereby saving time. I think that many software products will be operated from the ASPs hardware, using available Internet bandwidth. I also think that software applications will be rented rather than purchased using the ASP connection. Other software products will be distributed from an ASP directly to the end user, and self-install.
(D.O., New Orleans, Louisiana, USA)

***
I am using an ASP (Atomz.com) to provide intra-website search capability for over 10 of my clients' websites. If you have ever installed (or tried to install) a search engine on a site, then you will understand why I will never do it again. I plan to use an ASP to provide the forum (or bulletin board) function. (Just as ECMgt.com does for this forum.) Tech support is another area that I am looking at. ASPs have again reduced the cost for small/medium companies to have the same features as the big boys on the web.
(D., Denver, Colorado, USA)

***
Many companies, large and small, are beginning to consider and use ASPs. The value is particularly high for companies with distributed workforces and those who want to track and manage their software and IT services more efficiently.

I see the distribution of software shifting from traditional channels to ASPs. Not entirely, but partially. That trend will increase over time. I have stated in speeches over the past few years that product margins will shift from distributors in part back to the ISV.
(Veronia Williams, Founder, DiscoverIT)

***
I think so! I haven't dealt with ASPs myself, but reading the press it does appear that it's becoming an increasingly popular trend. Software is going to be produced in a much more flexible manner. This is necessary to cater for the different needs of companies. The Internet already has changed the way software is distributed. You download it! With ASPs, there won't be any distribution since it's centrally hosted. In a way, it's a throw back to the days when 'bureaus' would rent time and space on mainframes. The software is a LOT different, but the concept is not new.
(K.G., Silicon Valley, California, USA)

***
Yes, there is enough interest in ASPs as a viable business partner for businesses that either lack talent, technology or money to offer critical functions to their consuming public. Just as we have seen KMart offering ISP access with Yahoo and WAL-Mart going with AOL in partnering we are seeing the next wave of ASPs who will be using their customer base to leverage more business and in the process partner with more ASPs. The key seems to be right in the thick of applications that are "hot" or "cool" or rightly "in" at the moment.

In 1998, Internet ads went a little over USD $1B. In 1999, that figure is over USD $3B and in 2004 it is being forecast that it will be over USD $20B. Why do you think this is so? Because of the swelling user base and the march towards "online everything and everywhere" syndrome.
(A.B., Calcutta, INDIA)

***
Companies I have worked with are those transitioning from middleware to mainframe and vice-versa and those migrating from VSAM to DB2. ASPs will potentially change how software is produced for the company I work for. The company I work for will need the capability to support the varied clients system environments and software releases. Partnering will be required.
(I.R., San Francisco, California, USA)

***
I am based in Taiwan and work the Asia Pacific region. I do not see much of an increase towards ASP's for Foreign companies. The older senior management just do not "get it". However, Western-influenced companies are driving in that direction. I am personally working towards a B2B play and B2C play both of which will be posted via an ASP.

I think that the days of the home computer are limited. ASP's are going to be able to provide all resources and applications. We will all have a permanently connected large flat screen hooked to an ASP. Enterprises will hang out a lot longer and Finance institutions will hang on the longest. Why buy, maintain and support what you can lease. The forecast costs are fixed and you do not have to support a software team.
(David Hemmings, President, Global Stallion Ltd., TAIWAN)

***
ASP usage is definitely expanding. The companies using them include SMEs (small, medium enterprises) which will start with non-mission critical tools.

With the ASP as a model, hosting software will be more and more standardized. Shifting from one ASP to another will be not a problem. The rent and subscription model is low entry giving you the flexibility to try something new.
(S.W., San Francisco, California, USA)

***
I recently read somewhere that the ASP market is going to hit the $20B mark by 2001! I agree that the first targeted customers will be medium companies who cannot afford the infrastructure and IT costs. But I think we'll also find larger corporations turning to ASPs more and more as the squeeze for qualified IT resources forces them to think of "outsourcing". I believe it's also a huge opportunity for larger infrastructure companies to address ASPs needs.

How many SAP implementations have we seen miss their target dates in spite of the fact that the company implementing SAP has a staff of IT professionals. An ASP may be able to provide better turnaround because of its vast HW/SW/ and IT staff resources in specific niches.

As for the software industry, I think there is a natural trend for more and more packaged SW applications. This standardization and centralization will hopefully lead to easier and faster implementations.
(D.H., Palo Alto, California, USA)

 

CONTENT – ECMGT.COM E-COMMERCE NEWS

E-STRATEGIES & TRENDS NEWS
This section sponsored by - ECnow.com, please visit them at http://www.ecnow.com
ECnow.com
ToC

 

Pets.com smells success with sock puppet sales
 Of all the inventive ways Internet companies have tried to attract customers, Pets.com may well take the prize: It has started selling the company mascot.

Teen E-Shoppers Face Barriers
 According to new research from PricewaterhouseCoopers, U.S. teens are spending a considerable amount of time online, but rarely spend it shopping.

Shoppers find Web’s blowout sale is over
 Remember all that free shipping, gratis gift wrapping and below-cost merchandise on retail Web sites? Hold onto the memories, because they’re all that’s left of most of those perks in the stingy new world of e-retailing

Will Chairs Sell on the Web, or Just Fold?
 A year ago, the idea of selling furniture on the Internet seemed a stroke of genius. What could be cooler than clicking up a couch? Now, the idea doesn't seem so cool.

What's That Noise on the Internet? The Sound of Alliances Being Forged
 E-commerce partnership announcements have come so often recently that they have become the white noise of Internet business, the hum of the industry's hard drive. With these partnerships, sites achieve two critical e-commerce objectives: first, they increase the chances of shoppers' spending more on each order; second, they prevent customers from straying to other retailers.

Big boys lead the way to e-biz
 Want to succeed in e-business? Watch HP and IBM.

Analyst lists e-tailers headed for cash crunch
 Buy.com, Autoweb.com and at least 10 other Internet retailers will have to figure out ways to boost their cash reserves by the end of 2000 or in the first half of 2001, Goldman Sachs e-commerce analyst Anthony Noto said today.

The dotcom graveyard
 UpsideToday pays homage to the spate of recently departed Internet companies.

Think buyout, not IPO
 Many startups are better suited for acquisitions than to go public.

Service Beats Price on the Web, Study Finds
 Prices online vary widely, an MIT study says, because people place familiarity and service above cost.

Nervous shoppers lean toward big online names
 Customers and industry watchers say the recent stream of dot-com failures has some shoppers going with big-name e-tailers that they trust are on solid ground.

Can the Net Offer Security?
 Seattle-based SecureEye.com believes its digital surveillance technology will change the way public and private sector companies protect their properties.

Furniture.com Lays Off 80
 The Framingham online furniture store slashes its workforce 40 percent, cutting costs as it seeks to justify its backers' lastest $27 million investment.

 

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E-PRODUCTS NEWS

ToC

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Ecount Intros Anonymous E-Shopping Service
 Ecount, the online e-cash service, is developing an anonymous online shopping service called PrivateBuy, which allows consumers to remain partially or even totally anonymous from online merchants they buy goods and/or services from.

Amazon launches new site
 Amazon.com is preparing to launch a third European website and is considering a move into the Latin American market.

Laura Ashley launches online shopping
 Laura Ashley announces it is to develop an online shopping service securing the jobs of 300 workers in Wales.

AOL inks deal with maker of Web shopping bot
 America Online said it will use DealTime.com's comparison shopping services to help streamline its e-commerce offerings.

FedEx delivers e-commerce services
 Federal Express is delivering a service that will help small to medium-sized businesses build online stores.

Kmart launches online store
 If the online retail business were still being judged by last year's rules, Kmart would have been counted out a long time ago.

Fogdog Sports Launches Store for Schools, Institutions
 Fogdog Sports launched an institutional store offering products for institutional, school and recreational buyers.

The Museum Shop Moves Online
 To help cultural institutions capitalize on their online retailing opportunities, e-commerce companies that focus on museum wares have started to appear on the Internet landscape.

Web propels rise in book sales
 Buying books over the Internet helped fuel a rise in overall book purchases for adults in 1999, which reversed a decline in purchases the prior year, according to a new study.

Rentals.Com Offers "Virtual Office"
 Rentals.com, the Redwood City-based provider of online residential rental management services, is launching a Web site builder today.

AOL Debuts AOLTV in Three Markets
 Subscribers can watch television using their existing broadcast signals and choose from a variety of popular AOL features including e-mail, instant messaging, chat and a built-in programming guide. The service is connected through a set-top box and comes with a wireless keyboard or universal remote control.

E-Books: Are They the Business Traveler's Best Friend?
 With viewing technology improving rapidly, one local company is trying to bring fun-reading eBooks to business travelers and avid readers alike.

 

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E-SERVICES NEWS

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Visa Launches E-Commerce Security Initiatives
 Credit card giant Visa International has announced a pair of global e-commerce initiatives to offer tighter security measures for Internet consumers and reduce consumer-merchant online transaction disputes by as much as 50 percent.

VeriSign Simplifies Signatures
 The Internet security company wants to make it easier to authenticate electronic commerce transactions.

Firms Team for Next-Generation Payment Services
 Addressing the increasingly popular online payment niche, Net security specialist VeriSign Inc. teamed with American Express Co. and Ariba Inc. Monday to deliver the first card payment processing utility for online B2B transactions

First Data Launches Person-to-Person Payment Service
 Electronic commerce payment services company First Data Corp. said it plans to launch an Internet person-to-person payment service, Western Union MoneyZap, in July.

Royal Bank Offers Online Credit Card Processing
 Canada's largest bank is aiming to make it easier for its business customers to tackle e-commerce with the launch of its own real-time Internet payment service.

No More 'Sorry We Missed You'
 Shopping online is all about convenience -- until you're not home to receive your delivery. Three companies are ready to solve that problem.

Oblix moves beyond b-to-b
 Oblix provides a software tool that puts in place a small, but crucial piece of the multifaceted b-to-b e-commerce infrastructure puzzle.

REI.com Wears Outdoor Site Usability Crown
 Strategies of Top Outdoor Sites.

Evite, X.com to let party-goers pay up front
 Starting early next month, customers at party-planning site Evite will be able to send invitations that allow guests to pay for entry fees online via X.com's PayPal service.

Oracle forms alliance for telecom services software
 The database software maker and Lucent plan to offer a customer resource management and billing software suite targeted at communications service providers.

eProNet Boasts 100,000+ Online Database of Alumni Talent
 Companies looking for Internet talent will soon be able to tap into a database of over 100,000 alumni from 17 leading universities

ActLikeAnOwner.com Launches Interview-on-Demand
 If only the prospective client could see and hear you make that pitch for the contract you covet. Now they can, thanks to a free-of-charge online video autobiography service.

SocialNet.com Nets Marriages Galore
 Marriages abound on the Mountain View-based social site.

ebates.com to Reimburse Shoppers if eTailers Fold
 Promise to members covers all 400 online merchants through cash-back shopping portal

Entercom Hits the Net Waves Via StreamAudio.com
 Seattle.internet.com has learned that Tacoma's StreamAudio.com has entered into an agreement to provide webcasting, ad insertion and "now playing" needs for all 96 of Entercom's radio stations.

Paying for Press: USA TODAY to Charge for Archive Access
 Seattle.internet.com has learned that USA TODAY will be the first publisher to implement the combined Qpass and Proquest Archiver's electronic archive service.

Ecount Takes Webcertificate.com into Real World
 Online gift certificate and personal Web account company Ecount launched the Webcertificate shopping card good at any brick-and-mortar merchant that accepts credit cards.

 

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E-MARKETING NEWS

ToC

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Barnesandnoble.com exposes customer's information
A New Jersey man trying to key in a coupon code at Barnesandnoble.com yesterday found himself in another customer's account with access to that person's personal information.

Women More Concerned About Privacy Policies
More than two-thirds of computer users are concerned about Internet privacy issues and shun sites that do not guarantee security for personal data, a survey has found. In its eighth annual Consumer Market Survey, the Software & Information Industry Association

A Web Site Is Not a Vending Machine
As e-tailers battle to prove that their sites are secure shopping environments in the wake of several nasty viruses, many continue to overlook a more obvious problem - the lack of real-time, online customer service.

Web Builds Relationships More Than Sales, Survey Finds
About a quarter of Canadian entrepreneurs who answered a recent survey find e-business helps build customer relationships, while only about 10 percent find it boosts sales. The survey by consulting firm Ernst & Young also found rapid growth in the number of entrepreneurs with Web sites.

Online Giants Team On Commerce Guidelines
America Online, Microsoft and five other high-tech companies plan to unveil global guidelines for consumer protection in an effort to make Internet shoppers feel safer, the Washington Post reported Tuesday.

Coupons and Gift Certificates Adapting to Life Online
Coupons and gift certificates, two old standbys of offline retailing, are making the adjustment to an e-commerce world. A pair of surveys look at how the transition is going.

Comparison Sites Emerge As Electronic Retail Force
Online retailers seeking a cost-effective way to guide Web shoppers to their sites are embracing a resource that most had shunned only a year ago -- the comparison-shopping site.

Treating Customers Like... Customers
Buyers are not as loyal as they used to be in the past. Where loyalty does exist, it's frequently connected to service and support rather than to the product itself. In an attempt to increase customer loyalty, marketers now use a number of incentive programs that reward prospects and customers for providing information, taking an action, or making a purchase.

Retailers Versus E-Tailers: Know Your Strong Suit
The race for most retailers today is getting online. But they’re on the wrong track with a focus on beating the online competition. Can retailers really compete against price, product selection, and unlimited information? Martin thinks it’s a battle that’s lost before it’s begun. Retailers will have to rethink their focus and may find success all comes down to being the best at what you’re good at.

B2B Sites Need Branding, Too
There's a misconception in some quarters about B2B branding. It contends that the principles of brand building suddenly don't apply or aren't needed once B2B communications replace B2C messages. It seems that B2B communications are governed by a "Why should I bother?" mentality. Businesses aren't emotionally driven, they're not brand-conscious, they buy on price. Because of this erroneous assumption, most B2B web sites look alike. Martin's advice is to remember one thing: We're all human beings.

Giveaways -- they pay off on the Web
Giveaway sites are attracting a new kind of audience to the Web, users who might be willing to pay for goods and services even as they collect a free gift.

Another Perk: Free Internet Access
Let's see, lots of paid holidays, great health insurance, retirement plans and other benefits. Now, government employees can get free and anonymous Internet access from the newly launched PlanetGov.com.

Shoes a Fit for S.F. Web Site
The race for the world's largest shoe store is on. In an industry that is fragmented, some e-commerce sites are lacing up to be the number one supplier of shoes.

 

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SUPPLY CHAIN NEWS

ToC

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Reality check for e-markets
Information technology organizations, which are key to making electronic marketplaces work, are also obstacles. Gushing press releases also don't mention the problems IT managers must help solve, such as bringing suppliers on board and wrestling with thorny political and ownership issues.

U.S. Distributors Not Ready for the Net
A new study by international management and information technology consulting firm Cap Gemini Ernst & Young U.S. shows that while most U.S. distributors acknowledge the impact the Internet will have on their businesses, not all of them are prepared for the changes to come in the digital age.

How the Auto Industry Drives to the Web
Carmakers worried about losing ground to online middlemen are developing their own Web programs. Some dealers aren't happy.

Open Market to unveil Net marketplace software
Software firm Open Market will announce tomorrow that it is offering bundled services that will effectively offer one-stop shopping for companies looking to quickly develop online marketplaces.

FedBid.com Unveils Govt Auction Site
Another entry into the government electronic commerce market launched June 20 with FedBid.com of Germantown, Md., unveiling its online auctioning site.

Hilton Hotels Unveils B2B Marketplace
Hilton Hotels Corp. unveiled a business-to-business

Web-Based Software for Online Product Returns Launched
Application service provider ReturnCentral.com launched a suite of Web-based software apps designed to help businesses control their online product returns.

Tech Titans to Launch Powerful Net Marketplace
Nortel Networks and IBM will join their purchasing power to form one of the world's largest b-to-b Net marketplaces.

OrderZone.com, Works.com to merge
B-to-b marketplace to focus on small, medium businesses.

Solving the IT Puzzle
eJigsaw, a Hayward-based B2B Web site thinks it has the solution. The site features IT software by company, product, and industry, and a search engine to compare and evaluate IT products and services online. Users can construct custom searches for software or services, view information about vendors and perform side-by-side comparisons.

Worry-free Web shopping
To entice consumers into buying more products and services online, credit card companies such as Visa International and MasterCard International Inc. are beefing up fraud protection and switching to zero liability -- meaning that if someone fraudulently uses your card and racks up a big bill, you don't have to pay a penny of it.

Ovum: E-Business Security Needs Revamping
E-commerce companies need to take a long, hard look at their e-security systems, a report out Wednesday said. The study even goes so far as to warn companies that their old security models need radical changes to adapt to the brave new e-world.

Integrating Web Operations -- or Not
Even as many companies preach the gospel of Internet integration, some are telling regulators that their Internet and physical-world operations should be treated as distinct and separate businesses for tax purposes.

Online Grocery Market Still Kicking in North America
A pair of studies have found that the online purchases of food and groceries in both the US and Canada are in the early stages of development, and there is a significant opportunity for growth.

Webvan Takes a Wrong Turn
No one can accuse Webvan of lacking the killer instinct. In the past year, the company has pledged to spend $1 billion on infrastructure and has steered itself into competition with the likes of Amazon.com. But whether the company's underlying strategy is sound is another matter.

Can Adexa get me my couch on time?
Net markets won't succeed without an efficient supply chain.

Attack of the 50 Ft. Empowered Consumer
Businesses that can't change the way they think about their customers should be shaking in their boots.

B-to-B Exchanges: More Fiction Than Fact
Press releases trumpeting the births of business-to-business exchanges have littered the landscape in the past few months. But it is unclear when any of the exchanges will see the light of day.

PriceHive.com's "Gas Hive" for Cheaper Gas
El Cerrito-based price comparison search engine helps Bay Area resident hunt down cheaper gas.

Medical group pushes standards for online buying
A group of health-care purchasing co-ops said today they are teaming with three e-commerce companies to develop needed standards for buying supplies online.

Order Tracking: Slick and Easy
Ready to deliver customer orders? Then don't miss this! Prep your database and turn email into an instant business record.

Brick-and-mortar companies take different online paths
Electronics retailer Best Buy yesterday launched a new Web site that sells all of its products, while video-store chain Hollywood Entertainment said the e-commerce piece of its Reel.com unit is being closed.

 

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CONTENT, PORTALS & COMMUNITY NEWS

ToC

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Portals Struggle to Convert Browsers to Shoppers
Phantom shoppers, who toss items into their virtual carts and then flee the site without the goods, cost e-tailers $6 billion to $9 billion in lost sales in 1999, according to industry analysts. With stakes so high, portals won't reveal exact strategies for converting shoppers into buyers, but there are hints and changes that will be tested and evaluated this summer.

E-Commerce Doors Slamming On Portals|
Changing economics may be shifting power away from portals and to the companies that draw users to the sites.

BEA Launches Online E-Commerce Developer Center
E-commerce transactions company BEA Systems Inc. launches a developer program.

B-to-B Marketplaces Face Crowded Field
Lately, investors in B-to-B companies are feeling like homeowners watching their neighbors' house burn. They feel sorry for the neighbors. But most of all, they hope the fire doesn't spread to their own house.

'Sanford and Son' meet the Internet
B-to-b iSalvage.com targets $10-billion-a-year recycled car parts industry.

Cablevision Sues Excite@Home
Excite@Home, the Redwood City-based provider of online access via cable, is being sued by Cablevision Systems, New York City_s largest cable TV provider.

AOL Membership Tops 23 Million
Expanded services drive surge

Shareholders approve AOL-Time Warner
Investors like the marriage, but federal and international regulators are expected to take a harder look.

Adding Leverage to your Content with XMLExtreme
Is XML going COUNTRY? Find out what one Issaquah-based internet software development company and the Dixie Chicks' Fly Tour have in common.

LookSmarts Looks Better
LookSmart, the Palo Alto-based, Internet search service relaunched its home page with a plainer design, and removed several features like horoscopes it says have created the misleading impression that it was a Web site for consumers.

Consortium To Develop Auto Parts Destination
Partners hope for largest car parts e-commerce site

Online shopping numbers dip, report says
Amid tough times for many dot-coms, a new report suggests that online shopping habits are on the decline.

 

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GOVERNANCE & GOING GLOBAL NEWS

ToC

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House overwhelmingly passes e-signature measure
The U.S. House of Representatives today overwhelmingly passed the Electronic Signatures in Global and National Commerce Act, which gives electronic signatures and documents the same legal standing as their physical counterparts. The bill must be passed by the Senate and signed by the president before it becomes law.

California Tax Bill Would Be a Blow to Online Companies
Bill AB 2412 would require online sellers to collect sales tax in California if they are affiliated with companies that have stores in the state.

U.S. Treasury Supports Internet Tax Ban
In a speech given to the Computer and Communications Industry Association on Monday, U.S. Treasury Deputy Secretary Stuart Eizenstat declared the agency's support of a permanent Internet sales tax ban, despite the contribution such taxes would make to U.S. coffers.

U.S. E-Commerce Sets New Record| The information technology industry is the number one driving force in the runaway American economy, according to studies by the U.S. government and the Center for Research on Electronic Commerce at the University of Texas, Austin.

Digital Signatures Headed for a Vote
After months of partisan wrangling over clauses on consumer protection and data storage, Congress hopes to pass a bill designed to make it easier for companies and consumers to do business in the digital age.

EU: VAT Is It Doing Now?
The European Commission will present proposals next week urging the United States to put value-added tax on exports of online digital products, such as downloaded software or music, EU officials said on Thursday.

British E-Commerce to RIP?
Draft legislation allowing security officials to monitor business emails could prevent Britain becoming a leader in e-commerce, the British Chambers of Commerce warned Monday.

Next Antitrust Battle: Plastic
The Justice Department is now taking on Visa and MasterCard, saying the credit card giants restrict competition with their exclusive relationships with banks.

Judge Denies Credit Card Request
A U.S. federal judge on Thursday overturned an attempt by top credit card networks Visa and MasterCard to have a government antitrust case against them dismissed, paving the way for a lengthy trial.

Patent Seeks to Collect on Data
A small Florida company says it now has the rights to require patent licensing from any company that collects user information and passes it on to a third party. Some think it's yet another sign of a patent process gone haywire.

E-signatures bill: Fraud made easy?
The digital signatures bill passed by Congress this week threatens to cause identity theft to skyrocket and leave consumers liable for large-ticket purchases, consumer advocates said on Friday.

Priceline makes European bid
Priceline.com expands into Europe and plans to start offering products and services there before the end of this year.

Bertelsmann set to open online bookstore in Japan
BOL Japan, the Japanese online arm of Europe's largest media company, will open the store with 500,000 Japanese titles.

Grassroots.com Sounds Off to GOP
Visitors to the San Bruno-based site can provide instant feedback to Republican National Committee on an array of issues.

 

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PARTNERS & DEALS NEWS

ToC

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Pets.com to buy assets of rival Petstore.com
Pets.com is now the big dog of online pet stores, announcing today that it is buying the assets of rival Petstore.com.

Safeway Seals Online Groceries Pact With GroceryWorks
Safeway Inc., the Fortune 50 food and drug retailing company with 1,663 stores in North America, has finalized a previously-announced $30 million deal with GroceryWorks, a Dallas-based Internet groceries distribution company.

Toysrus.com moves to balance seasonal business
Toysrus.com has inked a deal with Nickelodeon to launch a Nickelodeon boutique channel on its Web site. Toysrus.com will also acquire the inventory of its former rival, Viacom-owned Red Rocket, which shut its virtual doors in May.

EBay To Buy Online Trading Site Half.com
Online auction site eBay said Tuesday it agreed to buy Half.com, another online trading place, where consumers sell used books, CDs, and movies, typically at half off the list price.

iVillage Confirms Plans to Sell iBaby Unit
The online women's network said it is in talks to sell the e-commerce unit to BabyGear.com.

Barnesandnoble.com invests in MightyWords
Online bookseller Barnesandnoble.com has shelled out $20 million for an equity stake in MightyWords, an electronic publisher of short works.

WebEx aims to raise $40 million in IPO
The 5-year-old company intends to sell an 11 percent stake for $12 to $14 per share.

J.D. Edwards signs e-commerce pacts with IBM, Sun
The struggling business-software maker will work with the two computing giants and two other companies to boost its prospects in online trading exchanges.

E*Trade in cahoots with Web chat company
The online brokerage will announce tomorrow that it has signed a deal with Cahoots and has made an equity investment in the instant messaging company.

Ariba to acquire SupplierMarket.com in stock deal
update Ariba agrees to issue about 6.3 million shares of stock to buy the online marketplace in a deal worth about $581 million.

Lycos To Wed Matchmaker?
A website report has the Waltham portal set to announce next week the acquisition of the personal ad site for $45 million.

AOL To Invest $200 Million in TiVo
Companies to develop AOL-branded set-top boxes

eCircles Teams with Compaq
eCircles, the Redwood City-based virtual community site, has partnered with Compaq to provide community building and sharing service to my Presario computer users.

AOL, Target Announce Alliance
Retailer to push AOL as ISP

Salon Flies with EarthLink
Salon.com, announces a content agreement with EarthLink.

PSINet Completes Metamor Acquisition
Shareholders approve all-stock deal

AOL, musicmaker.com end marketing relationship
The hits just keep coming for musicmaker.com, but they're not the sort the custom compilation CD Web site welcomes. Following news of a class action suit and a stock price plunging to the bottom of the charts, its marketing deal with America Online is now history.

 

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MOVERS & SHAKERS NEWS

ToC

 

Adobe Names Murray Demo Chief Financial Officer
Adobe Systems Incorporated today promoted interim CFO Murray Demo to chief financial officer.

Beyond.com Appoints Ronald S. Smith as CEO
Appointment with eCommerce service provider pending Canadian's visa approval.

Cidera Expands Executive Team
Appoints senior vice president/controller

Mr & Mrs Dotcom: S.F. Couple Each Heads A Web Company
It probably has sitcom potential: a married couple who share an unusual vocation, they are each CEO of their own Web startup. Oh yeah, and their first date was at a virtual reality conference, but that's getting ahead of the story.

BulkRegister Adds to Board of Directors
J. Robert Harcharik latest member to join

President Clinton Names Local Attorney as SBA's Northwest Administrator
Joann H. Francis will be responsible for the Small Business Administration's activities throughout the Northwest.

Washington Area Businesses Name Proxicom Exec CFO of the Year
Kenneth Tarpey takes top spot among 75 nominations

PaylinX Names Head of Professional Services
New group to implement company's enterprise payment software

Webversant Names Two E-Business Veterans to Leadership Roles
Sales and marketing execs appointed to Web infrastructure company

Simplexity Makes Leadership Team Additions
Six communications industry veterans to spearhead company's future growth

Value America Names Dorchak Chairman of Board
Smith becomes new chair of executive committee

Qpass Brings On Board CFO & Senior VP of Operations
Sterling Wilson will assume a principal role in the company's operational, financial and strategic activities.

Sun Promotes Schwartz Senior VP
Sun Microsystems, the Palo Alto-based provider of products, services and support solutions for building and maintaining network computing environments, promoted Jonathan Schwartz to senior vice president of corporate strategy and planning.

Dennis Shepard Joins Activate as COO
The former Mercata executive will oversee all operational activities at Activate Michael Moore Joins Infopop.com's Executive Team

EMC Calls on AT&T CIO
The Hopkinton-based data storage giant hires the telco executive for the new position of senior vice president of technology services.

 

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MISCELLANEOUS INFO

Laws of work from Jokeaholics.com

 

If you can't get your work done in the first 24 hours, work nights.

A pat on the back is only a few centimeters from a kick in the butt.

It doesn't matter what you do, it only matters what you say you've done and what you're going to do.

The more crap you put up with, the more crap you are going to get.

Eat one live toad the first thing in the morning and nothing worse will happen to you the rest of the day.

When the bosses talk about improving productivity, they are never talking about themselves.

Keep your boss's boss off your boss's back.

Everything can be filed under "miscellaneous."

People who go to conferences are the ones who shouldn't.

If it wasn't for the last minute, nothing would get done.

At work, the authority of a person is inversely proportional to the number of pens that person is carrying.

When you don't know what to do, walk fast and look worried.

Following the rules will not get the job done.

Getting the job done is no excuse for not following the rules.

No matter how much you do, you never do enough.

The last person that quit or was fired will be held responsible for everything that goes wrong.

When confronted by a difficult problem you can solve it more easily by reducing it to the question, "How would the Lone Ranger handle this?"

Please forward ECnow.com's ECMgt.com to friends and colleagues who will find it valuable. For copyright purposes we must ask that ECMgt.com only be distributed in its complete form. View past issues and signup to receive it at this location: http://ECMgt.com/or mailto:VMS3.Subscribe@ecnow.com?subject=Apr2000+subscribe

 

Executive Producer, Mitchell Levy (mailto:VMS3.Executive.Producer@ecnow.com)
News Editor, Jim Siegl (mailto:VMS3.News.Editor@ecnow.com)
Copy Editor, Jim Schibler (mailto:ecmgt.copy.editor@ecnow.com)

 

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