( BW)(MA-PROGRESS-SOFTWARE)(PRGS) Progress Software Announces Program For ASP-Enabling 5,000 Applications Worldwide
Business/Technology Editors
Progress Software Worldwide Users Conference
BOSTON--(BUSINESS WIRE)--May 24, 1999--
2,000 ISVs will be able to quickly deliver business benefit without usual upfront IT investment; company introduces ISVs already
gaining ground in ASP market
Progress Software Corporation (NASDAQ:PRGS), a leading supplier of application development, deployment and management products, today announced a program to enable its 2,000 independent software vendors (ISVs) worldwide to extend their 5,000 packaged applications to the application service provider (ASP) model. The program includes new technology, services and partnerships that will help ISVs quickly embrace the ASP business model.
A channel veteran, Progress Software has long been recognized for its ability to give ISVs the technology and services to meet the rigorous requirements of middle market, resource-constrained environments and to deliver industry-specific solutions more quickly, more tightly integrated and at a low total cost of ownership. These same qualities firmly position Progress Software to lead the emerging ASP market and to grow apace with its ISVs as the ASP market explodes.
Forrester Research Inc. is projecting that the market for application rentals, which stood at zero just a few months ago, will reach $6.4 billion by 2001. Forrester and other analyst firms predict that many smaller, or resource-constrained, organizations will opt to rent software applications on a monthly basis from ASPs. These organizations will thereby realize the business benefits of previously inaccessible best-of-breed applications without making up-front investments in internal systems administration or IT staff. ISVs benefit from the ability to open their applications to an entirely new and potentially lucrative market.
"Progress Software anticipated the ASP model back when we first introduced our Universal Application Architecture in early 1998. Since then, we've focused on delivering application deployment and management technologies that help ISVs build and run distributed applications that can be deployed over the Internet and beyond the enterprise," said Progress Software President Joseph W. Alsop. "As a result, many of our ISVs are already using our powerful application servers and scalable database to quickly ASP-enable both new and existing applications."
"Many forward-looking application vendors are already realizing that the market for Web-based application outsourcing will be huge and the smart ones are aligning themselves with companies that can provide the technology to create these rental applications," said Clare Gillan, a vice president with International Data Corporation. "ISVs need powerful development tools to create these thin, highly-customizable applications and they need flexible application servers to deploy them over the Internet."
Progress Software ISVs Introduce ASP Solutions
As part of its announcement, Progress Software introduced ISVs that have already entered the global ASP market, including Prophet 21 Inc., and Systemcare:
Prophet 21, Inc., a leading provider of business software for customer-intensive wholesale distributors, recently announced its outsourcing partnership with equipment provider Sales Systems, Inc. to host the Prophet 21 Acclaim software solution. For a flat monthly fee, Sales Systems provides system administration and a complete and secure infrastructure with a predictable and economical cost to Prophet 21 customers. Customers enjoy a cost-effective alternative to internal maintenance without incurring significant hardware, software or implementation investments.
"We believe that more and more of our customers will recognize the rapid return on investment in outsourcing their current IT responsibilities, which will make them react more nimbly to future technology directions," said Charles L. Boyle, president and CEO of Prophet 21. "Hosting the application server for our customers allows them to focus on their core competency and allows us to focus on what we do best."
Prophet 21 plans to introduce hosting services later this year. They will provide a flexible, customized solution for customers to indicate the extent of IT responsibilities that will be handled internally or by Prophet 21. If the customer chooses hosting services, Prophet 21 could be responsible for both software and hardware updates as well as other system administration functions, which minimizes the need to hire, train or retain a skilled internal IT staff.
United Kingdom-based supply chain solutions provider Systemcare has created a sister company, SOS, specifically to offer ASP versions of its Mfour family of products. The Mfour suite provides a comprehensive, best-of-breed solution for retailers and wholesalers involved in buying, stocking, repackaging, manufacturing and selling goods and services.
Progress Software Joins Leaders in ASP Industry Consortium
To help move the ASP industry forward, Progress Software has teamed with other industry leaders in the newly formed ASP Industry Consortium. The ASP Industry Consortium is an advocacy group formed to promote the ASP industry by sponsoring research, fostering standards and articulating the measurable benefits of the evolving delivery model. Members of the ASP Industry Consortium include: AT&T; Cisco Systems, Inc.; Citrix Systems, Inc.; Compaq Computer Corporation; Ernst & Young LLP; GTE; IBM Corp; and Sun Microsystems, Inc.
Progress Teams with FutureLink
Progress Software is pleased to announce it has teamed with FutureLink (OTC BB:FLNK) to provide application hosting services for Progress(R)-based solutions. FutureLink, "The Computer Utility Company(TM)" and a founder and recognized innovator in the ASP industry, provides small and mid-sized businesses (10-1,000 employees) with off-site, server-based computing, allowing them to escape the hardware/software upgrade cycle and focus on their core business. FutureLink's expertise in Application Hosting, IT Outsourcing, Business Practices Consulting, and Software Development enable them to offer an all-inclusive, trouble-free service at a predictable price.
"Our experience has shown that vertical applications focused on the small to mid-size market are the best fit for the ASP model," said Cameron Chell, president and CEO of FutureLink. "Applications built on Progress by their ISVs are brilliantly positioned for the ASP market because of their thin-client flexibility and lowest total cost of ownership (TCO). We are very pleased to be working with such a well positioned partner as Progress Software."
Relationship with Citrix Systems Speeds Time To Market
Progress Software will work with partner Citrix Systems to further integrate Progress-based applications with Citrix server-based computing technology. The two companies will ensure compatibility between applications built on Progress Software with Citrix MetaFrame(TM) and WinFrame(R) server-based computing software.
Citrix MetaFrame and WinFrame software and Independent Computing Architecture (ICA(R)) technology give ASPs the independence, speed and flexibility needed to extend any application to anyone, anywhere. Providing the back-end engine for predictable and efficient application delivery, Citrix server-based computing solutions enable service providers to guarantee levels of service, including availability, security and performance, for optimal end-user experience.
"The targeted, industry-specific functionality of applications built on Progress Software technology, paired with their low cost of ownership, make them ideal candidates for the ASP channel," said Chris Phoenix, vice president and general manager, iBusiness Unit, Citrix Systems, Inc. "Whether it's a matter of ASP-enabling an existing application or building a new ASP-enabled application from the ground up, the combination of Citrix MetaFrame and WinFrame server-based computing software and Progress Software technology can deliver a speedy, cost-effective and flexible solution."
Application Management Products Round Out ASP Offering
Progress Software's Internet Software Quality products allow ASPs to monitor the health and availability of their applications. Specifically, Progress(R) IPQoS(TM) provides the network monitoring tools ASPs need to set high QoS levels and to monitor and meet those levels.
In a related announcement, Progress Software today also revealed updated plans for its Universal Application Architecture (UAA), the company's roadmap for integrated business-to-business applications on the Internet. (Editors, please see related press release on Business Wire.)
About Progress Software
Progress Software Corporation (NASDAQ:PRGS) is a global supplier of software products and services for developing, deploying and managing business solutions across all computing and network environments. Our products, which are installed in over 60% of Fortune 100 companies, include application servers, databases, development tools and application management products for Internet/Web, extranet and intranet applications.
Our customers operate in 100 countries, are supported by 1,200 employees worldwide, and deploy annually over $1.5 billion in Progress Software-based applications built by more than 2,000 independent software vendors (ISVs). For more information, visit www.progress.com or +1-781-280-4000.
Progress is a registered trademark of Progress Software Corporation. Progress and other products of Progress Software referenced herein are trademarks of Progress Software Corporation. WinFrame and MetaFrame are trademarks of Citrix Systems, Inc. All other trademarks contained herein are the property of their respective owners.
--30--gk/bos*
CONTACT: Progress Software Corporation
Glen Zimmerman
(781) 280-4609
gzimmerm@progress.com
or
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Joan Geoghegan or Ed Harrison
(781) 684-0770
edh@schwartz-pr.com
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