Allaire Corporation (Nasdaq: ALLR), announced that Home Depot (NYSE: HD) has
chosen Allaire's JRun, a Java Servlet and JavaServer Pages (JSP) engine, to
power its in-store information kiosks. Home Depot, the world's largest home
improvement retailer, has established JRun as a corporate standard for Web-based
supports Sun Microsystems' JavaServer Pages (JSP) 1.0 specification and provides
an environment to build and deliver Java Servlets and JSP applications on a
variety of operating systems using all the major Java Virtual Machines and Web
servers. By standardizing on JRun, Home Depot can take advantage of the technology
to build Web applications for everything from the in-store kiosks to corporate
intranets to e-commerce sites.
you've ever spent an hour wandering around inside a Home Depot, you'll applaud
the arrival of kiosks. Furthermore, this announcement represents two significant
issues. The first, is the world's largest home improvement retailer has selected
Java based technology as a standard. As the technology evolves it is worth noting
who adopts it and how quickly.
Home Depot plans to integrate the technology to directly benefit the consumer.
Home Depot is embracing technology which supports a customer self-service model.
The inclusion of in-store kiosks is representative of a growing trend of retailers
to blend web technology with traditional brick and mortar establishments.
such as Border's Book Stores and REI (Recreational Equipment Inc.) have integrated
web technology within their stores. Through the use of kiosks customers benefit
as inventory levels, detailed product and related service information are available
on command. If successful, this move by Home Depot will lead to increased sales
and improved operational efficiencies.
This announcement represents positive news for Allaire. The company has experienced
net losses in each fiscal period since its inception. However, the Home Depot
endorsement supports Allaire's focus on major account sales and marketing programs
to increase brand awareness. It is important to note that the jury is still
out in regard to the adoption rate of JSP technology. The specification was
released last summer, and organizations are considering whether it applies to
their needs. Perhaps Home Depot's endorsement signals the start of a trend.
As Allaire's JRun engine evolves and a sizable library of Java objects is constructed,
look for this company to capitalize on its knowledge base and client list.