[Johannesburg,
16 January 2003] - WebTec is partnering ICL in an MSP (managed
service provision) joint venture, offering a subscription-based
application service believed to be a first for SA.
"The
WebTec/ICL partnership is the first to formally launch a full
subscription-based (on demand) MSP product strategy," explained
WebTec marketing director, Andre de Wet.
Recently,
newly appointed IBM CEO Sam Palmisano said that IBM is taking
a $10 billion bet in the area of on-demand computing. The announcement
was favourably received by analysts.
Sun
Microsystems and Hewlett-Packard have also announced their intention
to enter this market.
Analysts
believe the idea of on-demand computing is good for customers
because of the cost savings and flexibility it provides by not
having to entrench oneself in a specific service or software application.
De
Wet said the service will be provided on an on-demand basis similar
to a pay-as-you-go service.
"Customers
will be able to subscribe to the usage of the software on an hourly,
daily or monthly rate. This significantly reduces costs by eliminating
the need for outright purchase," he explained.
"The
cost saving benefits to the client can be substantial. Expenses
become more easily managed as an operating expense compared with
the old model of requiring a large capital outlay," added
De Wet.
Some
applications are also available as trialware. Users will have
a 30-day trial period. After expiration of the trial period, a
licence can then be purchased online.
The
WebTec/ICL MSP service will also offer its clients business processes
such as processing orders and payments, grant or deny usage authorisations
and produce reports for management.
ICL
infrastructure services manager, Mike Semple added: "ICL
is proud to be able to assist in bringing this service to the
local market. ICL is committed to working with innovators in the
IT industry, and delivering real customer benefit through Web-related
services. Our partnership with WebTec leverages the considerable
synergy of our respective offering set at a time when the MSP
model is gaining rapid market acceptance.
"Companies
are under increasing cost pressure. To purchase software, exactly
what they need when they need it, makes sense," he said.
"Utility
or on-demand computing in the software market is expected to be
adopted in a phased-in process. Both the outsourcing and hardware
markets have already adopted this model, now buying skills or
hardware resources only when required," said Semple.