One Step Closer to the Global ASP

  • Written By: A. Turner
  • Published: July 17 2000

One Step Closer to the Global ASP
A. Turner - July 17, 2000

Event Summary

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.

J.D. 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.

Europe and Africa

U.K.: 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, 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 under an application service provider (ASP) arrangement as well as running

Germany, 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.

U.K. & 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.

South 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.

France: Steria provides solutions for the consumer packaged goods, industrial sectors and services in France.

Asia Pacific

Asia: JDe.sourcing recently signed several partners covering key territories throughout Asia.

Taiwan: EDS Taiwan will provide application hosting services to small and medium enterprises in Taiwan.

Singapore, Malaysia, Hong Kong and Taiwan: provides application hosting to small and medium enterprises in Singapore, Malaysia, Hong Kong and Taiwan.

Singapore: S&I.COM provides application hosting services to customers in Singapore.

Hong 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.

Latin America

Argentina, 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.

Venezuela: BFPG Ingenieros C.A. provides application hosting services to small and medium enterprises in Venezuela.

Chile 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

MIRUS is the newest ASP partner in the United States. MIRUS will provide templated J.D. Edwards solutions for the restaurant industry.

J.D. 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.

Existing 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.

Market Impact

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.

For 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.

User Recommendations

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.

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