To: LANCE B (155 )
From: LANCE B Thursday, Jul 29 1999 2:13PM ET
Reply # of 156
EBAS- MY NEXT LONG TERM STOCK..
gave up trying to get under .50 cents,company
is starting to put news out too frequent now...
please see thread for details..started by me...
this is the news that caught my eye
(BSNS WIRE) IDC Expects Exploding ASP Market to Reach $2 Billion in Reve
IDC Expects Exploding ASP Market to Reach $2 Billion in Revenue by 2003 -
ebaseOne to Capitalize on Astonishing Market Growth
Business Editors/High-Tech Writers
HOUSTON--(BUSINESS WIRE)--June 4, 1999--
'Why buy when you can rent' approach enables small and midsize
companies to take advantage of high-end software applications without
large up-front investments
Houston-based ebaseOne (OTC BB: EBAS), a rapidly growing company
in software leasing for small and midsize companies, believes that the
Application Service Provider (ASP) market may well represent the
largest growth potential in the high-tech marketplace. According to
International Data Corp.'s study, "Worldwide Application Service
Provider Forecast 1998-2003," IDC predicts that high-end
Internet-based application services will grow at an astonishing annual
rate of 91% to $2 billion by 2003. And according to Forrester
Research, (Nasdaq: FORR), the market for packaged application
outsourcing services as a whole will reach $21 billion by 2001.
"The ASP industry is exploding, because it solves all of the
major financial problems typically associated with high-end software
applications. For the first time, even small and midsize businesses
will be able to afford almost everything up to the most complex
enterprise-wide software applications," says John Frazier, president
and CEO of ebaseOne, Inc.
ASP software hosting, also called "software rental," allows
companies to access applications that are stored on central servers.
In the past, companies were forced to purchase one-time software
product licenses that were either based on the number of seats or the
size of the company. This presented a major problem, especially for
small and midsize businesses that have not been able to afford the
significant up-front cost required to purchase the software.
Additionally, companies then had to contract for the necessary
professional services to implement those applications, including
consulting and training services.
"Our business model changes all this. For a flat monthly fee,
corporations are able to lease all types of software, from sales force
automation and customer support to accounting applications. ebaseOne
also provides additional services, such as security, Internet access
management, back-up and data redundancy. This allows our customers to
rent experts on an as-needed basis and eliminates the necessity of
maintaining a large internal IT-staff. For the first time, small and
midsize companies can actually afford top-notch technology and IT
professionals without large up-front investments or the high risks
associated with unpredictable additional expenses," explains Frazier.
According to Bear, Stearns & Co., this subscription-based
business model can easily become the dominant enterprise application
business model in the middle market. That's why all the major software
companies are betting big on ASPs. For example, according to ZDNET
(Nasdaq: ZD), Oracle (Nasdaq: ORCL) has set up a $100 million fund for
fledgling ASPs. In April, Peoplesoft (Nasdaq: PSFT) announced that it
was making an equity investment in Corio, a start-up Application
Service Provider. In March, German software giant SAP (NYSE: SAP)
signed an outsourcing deal with EDS (NYSE: EDS).
ebaseOne is limiting the number of its business partners to
ensure a strong focus. At present, they include companies like
Microsoft (Nasdaq: MSFT), Cisco (Nasdaq: CSCO) and Tivoli - an
IBM-owned (NYSE: IBM) company. Even though ebaseOne is only now
entering the ASP market, it has a successful track record working with
many of these companies in the past. For example, ebaseOne has been
Tivoli's number one business partner worldwide in sales of its IT
Director software.
Even though the subscription-based model is fairly new to the
software industry, it is the very cornerstone that successful Internet
companies are built upon. In fact, America Online (NYSE: AOL) is the
best example of a subscription-based technology company.
"In AOL's model, users pay a monthly fee for the right to access
AOL's content. In our model, companies pay a monthly fee for the right
to use applications that are also delivered via an Internet
connection. Global connectivity via the Web, which is now cheap, fast
and secure, is a key driver of this trend," says Frazier.
Last month, the ASP Industry Consortium was founded to promote
the industry by sponsoring research, fostering standards and
articulating the measurable benefit of the delivery model. Founding
members include companies like AT&T (NYSE: T), Cisco Systems, GTE
(NYSE: GTE), FutureLink (OTC BB: FLNKD), Compaq (NYSE: CPQ), Verio
(Nasdaq: VRIO), IBM and Marimba (Nasdaq: MRBA)
The statements made by ebaseOne may be forward-looking in nature.
Actual results may differ materially from those projected in
forward-looking statements. ebaseOne believes that its primary risk
factors include, but are not limited to: the need for substantial
financial requirements; the need to develop effective internal
processes and systems; the ability to attract and retain high-quality
employees; changes in the overall economy; changes in technology; the
number and size of competitors in its markets; changes in the law and
regulatory policy; and the mix of product and services offered in the
company's target markets. Merger Communications (Merger) is a media
relations firm employed by the Company. The statements and opinions
presented here represent the views of the Company, not Merger, as the
release is based on information provided by the Company. Merger and
the Company believe that all information in this release has been
obtained from sources considered reliable, but can't guarantee that
the statements presented herein are accurate or complete. Merger's
compensation for its media relations services, including preparation
of press releases, consists of a monthly retainer and warrants for the
purchase of the Company's stock. Merger may have a long position in
the securities of the companies in which it distributes information to
the media, and Merger may be buying or selling securities in the
course of its regular business.
--30--LM/na*
CONTACT: Merger Communications Inc., Houston
Patricia Cunningham or David Drake, 713/267-2328
KEYWORD: TEXAS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
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