One Step Closer to the Global ASP
On June 21, 2000, J.D. Edwards & Company (NASDAQ: JDEC), announced the
Company's JDe.sourcing application hosting program has expanded its scope
through partnerships with leading ASP providers in Asia, Europe, Africa,
Latin America and North America.
Edwards' JDe.sourcing is an application hosting initiative that delivers
e-business solutions directly to customers across the Internet. In recent
months, JDe.sourcing has expanded to include 18 ASP partners and nearly
3,000 users worldwide. J.D. Edwards can now offer industry-specific solutions
for industries such as high-tech, plastics, construction and engineering
and the restaurant and food industries in major markets around the world.
Arthur Andersen has recently joined JDe.sourcing in the United Kingdom
as both an application hosting partner and a business process outsourcing
partner. Arthur Andersen recently won the business of adabra.com, the
UK's leading community-shopping website offering selected communities
the chance to run an aggregated buying business under their own brand.
Arthur Andersen will host the OneWorld solution for adabra.com under an
application service provider (ASP) arrangement as well as running
Austria & Switzerland: Start Amadeus, a new ASP partner serving Germany,
Austria and Switzerland has just signed its first customer, STEEL, an
Austria-based virtual digital steel marketplace.
& Canada: IBM Global Services provides application hosting tailored
to specific vertical markets for customers in the United Kingdom. IBM
has recently expanded its relationship with JDe.sourcing to include the
U.S., the U.K. and Canada.
Africa: Enterprise Outsourcing (EOH) offers application hosting for
the small and medium enterprise (SME) market in South Africa. EOH creates
end-to-end trading exchanges for e-services in chosen vertical/regional
markets by leveraging the e-fulfillment capabilities of J.D. Edwards.
Steria provides solutions for the consumer packaged goods, industrial
sectors and services in France.
JDe.sourcing recently signed several partners covering key territories
EDS Taiwan will provide application hosting services to small and medium
enterprises in Taiwan.
Malaysia, Hong Kong and Taiwan: etako.com provides application hosting
to small and medium enterprises in Singapore, Malaysia, Hong Kong and
S&I.COM provides application hosting services to customers in Singapore.
Kong: Super-office Ltd is a Subsidiary of SUNeVision Holdings Ltd,
the most recently signed JDe.sourcing partner, focuses on manufacturing
and import/export companies in Hong Kong.
Paraguay, Uruguay and Bolivia: Grupo ASSA's ASP offering serves vertical
markets such as financial services, communications, consumer products,
industrial fabrication, energy, oil and gas, health, government and construction
in Argentina, Paraguay, Uruguay and Bolivia. Grupo ASSA also has a focused
strategy addressing the SME market in those countries.
BFPG Ingenieros C.A. provides application hosting services to small and
medium enterprises in Venezuela.
and Peru: Mekano S.A. provides solutions for the automotive industry,
distributors, and dealers and the SME market in Chile and Peru.
United States and Canada
is the newest ASP partner in the United States. MIRUS will provide templated
J.D. Edwards solutions for the restaurant industry.
Edwards' Genesis channel, selling to customers earning less than $100
million, will now sell JDe.sourcing application hosting services to customers
across the U.S.
ASP partners in the U.S. include AristaSoft Corporation for the high-tech
equipment industry; Agilera for professional services; Aretech Information
Services, Inc. for utilities, infrastructure construction, and engineering
customers throughout the U.S. and automotive suppliers in the Great Lakes
region; World Technology Services for the construction and engineering
industries and J.D. Edwards' WorldSoftware customers, and Prentice Technologies
in additional industries. In addition to its role in the UK, Arthur Andersen
provides business process outsourcing services in the U.S.
J.D. Edwards announcement represents an impressive mix of hosting and
implementation partners. Previously, most application service provider
initiatives were geographically centric. (i.e., North America, Europe,
and the U.K.) J.D. Edwards' move signals the need for global solutions
and validates a market demand for such services. We anticipate other companies
such as SAP, and perhaps even Oracle to follow with similar alliance announcements.
pure-play ASPs, (companies synthesized as a result of the emerging Application
Service Provider market) this announcement is cause for trepidation. With
larger more established companies creating global ASP networks, the pure-plays
will need to make a decision to establish strategic partnerships or conduct
solo development. We anticipate domestic (U.S.) ASP's will create alliances
with these global companies to leverage their extended network. In turn,
they will bring to the table value added services or applications centric
to their organization.
If you are considering a J.D. Edwards outsourced solution and have global
requirements this announcement is great news. The mix of alliance partners
listed in their press release represents strong partners who may be able
to assist your business on several levels. However, we recommend comparing
J.D.Edwards' solution with their competitors. Since the Application Service
Provider market is growing exponentially you may find their competition
is only a step or two behind. If this is the case, a competitive price
comparison may be to your advantage.