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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / JUNE 16, 2003: VOL. 2 NO. 24

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Systems/Enterprise:

USi BRINGS GRID COMPUTING RESOURCES TO LEADING ISVs

USi has announced the expansion of its Independent Software Vendor (ISV) Enablement program, which allows ISVs to sell their software through an ASP delivery channel without incurring the cost or complexity of in-house application hosting and management. Leveraging USi's industry-leading AppHost solution, the enhancements to the ISV Enablement program include a more flexible architecture that reduces operating costs while delivering increased scalability, as well as additional support for joint sales opportunities. The company also announced that a number of its existing ISV clients, including Documentum, Optum, and Saba, have recently extended or renewed their contracts with USi.

"Working with USi has paid significant dividends," said Nan Silverman, Hosted Operations Manager for Documentum. "While retaining primary focus on our industry-leading products and services as well as our global customers, Documentum has leveraged the ASP channel to generate additional revenue for the company and introduced our technology to a broader scope of users, including a number that have become traditional licensees."

Leveraging recently enacted advances in infrastructure utilization available from USi's AppHost solution, the company's enhanced ISV Enablement program reduces initial requirements for hosting and managing these enterprise applications while adding new capabilities to dynamically respond in real-time to shifts in customer demand. As a result, these organizations can minimize their baseline commitments for system capacity with full assurances of their ability to scale to meet future needs.

"In software delivery, a shift from software provided as a product to software provided as a service is occurring," said Amy Mizoras, program manager for Software Pricing, Licensing and Delivery research at IDC. "This has strong implications for software licensing, technology, and partnering. In general, ISVs are seeing software licenses shrink as a proportion of their revenue mix, forcing them to focus on software maintenance and to consider alternative delivery models to build recurring revenue. As a result, many ISVs are now looking to create a software as a service delivery channel, which leverages the hosting and management expertise of a company such as an ASP. This approach enables the ISV to offer service delivery of its software while avoiding many of the infrastructure and management risks inherent in a go-it-alone approach."

"Optum is delivering Fulfillment Management solutions around the world 24 hours a day. We partner with USi because USi provides us the global 'always on' service that our customers demand," said Kevin Hart, Chief Operating Officer, Optum Inc. "USi allows Optum to roll out our solutions in a more efficient manner, which, in turn, gives our customers a faster and sustainable ROI."

Supporting the program is USi's professional services organization, which not only helps ISV's architect their solution for mass deployment as a service, but can also assist in the development of change management processes and other best practices, such as comprehensive Service Level Agreements (SLA) needed to successfully support these efforts. By combining this unmatched application management expertise with more flexible architecture, the program allows ISVs to quickly and easily introduce new services based on the ASP delivery model that allow them to realize additional revenue streams from clients seeking a hosted solution without undertaking the long-term commitments that would otherwise prohibit these introductions.

"We've enhanced our ISV Enablement program with new cost and operational flexibility to provide our clients and partners -- industry-leading software developers -- with additional resources for capturing the growing interest from end-users in utility computing," said Andrew Stern, Chairman and CEO, USi. "This more flexible architecture allows ISVs to limit initial commitments to these emerging markets with the assurance that increased demand can be addressed in just hours as opposed to weeks through the use of our AppHost solution. Not only can ISVs more closely match expenses with current revenue, but they can also enjoy the unmatched performance, availability and security that are the hallmarks of the USi brand."

ISV's participating in the program will also be able to take advantage of specialized marketing programs and call upon USi resources to support their sales force with qualified prospect engagements.

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