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Event Summary
On
March 1, 2000, Agilera.com was launched with the signing of definitive
agreements with CIBER, Inc. (NYSE: CBR), Verio Inc. (Nasdaq:VRIO), and
Centennial Ventures. Agilera.com is an ASP that provides hosted solutions
and value-added services by combining the application integration expertise
of CIBER with Verio's established Internet infrastructure. Agilera.com
also offers value-added products and services such as a personalized enterprise-wide
view delivered via the Internet (portal), a virtual private network (VPN),
proactive IT strategic counsel, and e-business fulfillment.
Agilera.com
announced that Paul Rudolph is moving from his post as CIBER's Chief Operating
Officer to become Chairman and Chief Executive Officer of the new ASP.
Prior to joining CIBER, Rudolph was President of EDS's Electronic Business
unit, responsible for the EDS electronic business practice. Rob Unger
remains President and Chief Operating Officer of Agilera.com
In
this joint venture, Verio will invest $30 million and own 39 percent of
the new company. Centennial Ventures will invest $15 million and own 19
percent of the new company. CIBER will contribute its ASP subsidiary,
CIBER Enterprise Outsourcing, representing a 42 percent interest. Agilera.com
will be headquartered in Englewood, Colorado.
Market
Impact
ASP's
are on the rise. Forrester Research predicts that application outsourcing
will be a $21 billion industry by 2001. Companies have recognized the
market potential and are forming strategic partnerships to deliver complete
solutions. Hosting companies, infrastructure enablers, and software providers
are joining forces to develop value added offerings.
Agilera.com
is offering solutions for vertical markets including emerging business,
higher education, retail, Independent Software Vendors and manufacturing
and distribution. These solutions include services such as hosting of
ERP Software, eCRM, eBusiness fulfillment, and enabling technologies like
eCommerce, Web self-service, imaging and voice response. Specifically
for ISVs, Agilera offers a stable platform for hosting and delivery of
their products.
User
Recommendations
Organizations considering an outsourced ERP or CRM applications might
consider Agilera.com's offerings. The combination of an established hosting
company and integrator is attractive. Agilera currently has partnerships
with JD Edwards, Lawson, and PeopleSoft. We suggest a price comparison
between Agilera and a comparable remote-hosted application such as SAP's
"mySAP.com" offering. The results may yield bargaining power between each
vendor.