Hosted Applications

In addition to offering Microsoft based operating systems and programs, many 3rd party software application vendors are providing ASP models as well. A perfect example of this is GPS (Great Plains Accounting Software). When GPS first offered a Windows based solution it was immediately developed to run on a thin client platform, originally under Citrix WinFrame and then using Windows NT 4.0 Terminal Server Edition. Recently GPS came out with a model for ASP where their authorized partners could offer GPS as a monthly subscription. At the end of December 2000 Microsoft and Great Plains announced that Microsoft would be purchasing Great Plains for approximately 1.1 Billion dollar stock trade in an effort to enhance the family of software products that Microsoft offers. This development further emphasizes how important the ASP model is to Microsoft and how serious they are about providing the market place with superior offerings in both operating systems and productivity software.

Hosted 3rd party Applications will play an important role in the ASP market. The ability to offer custom 3rd party applications to clients on an ASP platform allows the software provider to deploy and manage a much larger install base. Many times a software provider will have a sale very close to completion only to be delayed or even cancelled due to a problem with the customer's current LAN configuration. By offering an application via ASP the cost of upgrading the client's LAN hardware and software is eliminated. In addition, the ability to deploy an application quickly and on time is greatly improved. Fewer system problems mean fewer delays and more installed seats. All of the configuration and installation is handled at the ASP. All that is ever needed at the client site is a connection to the Internet and a browser. The software provider can focus on delivering the 3rd party application knowing that the platform is in place and ready to go. The software provider may or may not offer their program on a monthly subscription basis. The ASP will charge a monthly fee to house the application on the server. Typically this will cost somewhere between 5-15 dollars per month per session. The fee includes drive space to house the application and any additional hardware resources that may be required to operate the application successfully via thin client.

The ASP that creates solid alliances with 3rd party application vendors will excel in this new market place. PCD's goal is to pick exceptional products in complementary markets and work closely with those vendors to provide superior thin client products and services.