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Qwest Cyber.Solutions: “A Number 3 Please, and Make It Grande”

Written By: A. Turner
Published On: June 8 2000

Qwest Cyber.Solutions: "A Number 3 Please, and Make It Grande"
A. Turner - June 8 , 2000

Event Summary

In May, Qwest Cyber.Solutions LLC, (QCS), an Application Service Provider (ASP) announced its strategy to deliver ASP solutions designed for key market sectors. The company has packaged a suite of ASP products, called Enterprise Freedom, to serve as the foundation for solutions offered to the finance, communications, healthcare, and services sectors.

By identifying key market sectors that demonstrate the propensity to adopt the ASP model, QCS is moving to develop new solutions specifically tailored for high demand, early adopter industries where the ASP model may bring immediate value.

QCS is itself to build sector specific solutions, leveraging the company's key differentiators and core strengths in the following areas:

  • QCS' industry knowledge and best practices - QCS application staff have an average of 13 years of industry experience managing business applications.

  • Industry templates - leveraged from KPMG, a parent company and leading service firm. The standardized industry templates provide a set of software and solutions methodologies used to activate clients within the identified industries.

  • Qwest's global communications infrastructure and strong industry relationships with customers and partners.

QCS Enterprise Freedom Product Suite

The QCS Enterprise Freedom suite of ASP products has been packaged to serve as the basis for QCS' sector specific solution offerings. The products offer managed, flexible, scalable, and secure IT solutions designed to address both current and future IT and business challenges. The QCS Enterprise Freedom suite currently includes 3 products:

1. Ultimate Freedom by QCS
This product provides a bundled package of services for companies who need business critical applications up and running quickly, but do not have the necessary infrastructure or software resources. The product includes software, hosting and management with ongoing maintenance. Applications are hosted in Qwest's CyberCenters and delivered over the optically linked, secure Internet communications fiber network. QCS manages and supports the entire hosted solution.

2. Freedom for Hosted Applications by QCS
Freedom for Hosted Apps provides a package of hosting and management services. QCS hosts ERP, CRM, and other applications in Qwest's CyberCenters and delivers them via the optically linked secure Internet communications fiber network.

3. Freedom for Managed Applications by QCS
This product provides application management services for companies who want to preserve a current investment in IT infrastructure and software but require expertise and ongoing maintenance for strategic applications.

All the QCS Enterprise Freedom products offer solutions with "rapid" activation, a single point of contact and a monthly billing system. The Enterprise Freedom product line supports QCS' portfolio of software from strategic partners Ariba, Captura, Oracle, Peoplesoft, SAP and Siebel Systems.

Market Impact

Corio, USinternetworking, Interpath and others, offer similar product solutions. The implied differentiation occurs with QCS's identification of select industry verticals and the leveraged use of KPMG's "templates." We believe the ASP market is evolving where product offerings are "normalizing" (mix of ERP, CRM, and e-commerce, etc.) and vendors are establishing "value packages" targeting specific industries.

We expect this trend to continue. As more organizations embrace an "outsourced" model (analysts predict a 20-40 billion market by 2004), and the ASP market swells with vendors; the movement toward "specialization" will become evident through Application Service Provider announcements.

User Recommendations

If you are considering an outsourced solution this announcement is attractive. QCS and others offer packages backed by substantial hosting and support organizations. However, attention to detail will reward ASP shoppers. Each industry and solution application command different needs. The promise of "rapid" deployment should be tempered with reality when measuring your company's needs and the complexity of services you require. Shop wisely, check out "market sector" focused companies as well as others offering similar solution applications.

 
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