To: Richard B. Haenisch who wrote (556 ) 8/1/1999 6:54:00 PM From: Steve Rubakh Respond to of 1214
Interliant Inc. (Houston), a provider of network-based hosting and messaging services, may have become the first network service provider to introduce hosted applications when it launched rentable Lotus Notes discussion and news service applications from Lotus Development Corp. (Cambridge, Mass.) five years ago. Now Interliant offers more than 150 managed groupware applications worldwide from its Houston data center. It also has codeveloped with Lotus a collaborative application server platform called Domino Instant! Host, which was endorsed last March by 11 ISPs throughout the world. Interliant says it hosts 10,000 interactive applications for more than 2,000 companies worldwide. The model is changing, however, largely because of custom applications for specific customers, the advent of Web access, and extranets. "Extranet business partners are moving more to shrink-wrapped applications, and we and Lotus Domino can be a vehicle to more widely market these apps, making them available to all ISP customers," says Ann Zitterkopf, vice president of European business operations for Interliant. In terms of billing, a Domino-hosted application can be programmed to track usage by about 130 different metrics, each of which the service provider can use to bill customers. "The system can track per user per month, whether they access or not, or it can track successful application log-ins, or some applications can do things like track and bill only by actual postings at the site," says Steve Brand, senior director of Lotus' hosted Internet solutions division. Domino could even capture class of service levels to bill for premium or as-available bandwidth services, he adds. Several ISPs privately suggest that multipurpose servers from Microsoft Corp. and Netscape Communications Inc. are catching up to Lotus, but they add that the Domino model lays the groundwork for service providers to create a mall in which independent software vendors make their networked applications available on a usage-based license similar to the current model of per-user licensing via compact disc (CD) distribution