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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (89484)	10/5/1999 9:28:00 AM
From: greenspirit	Read Replies (1) \| Respond to of 186894

Ibexx and thread, article..HP, Intel To Serve Up Outsourced Apps October 5, 1999 INTERNETWEEK : Add intel and hewlett- Packard to the list of companies looking to profit from the swing toward application outsourcing. Last week, Intel cut the ribbon on its Internet outsourcing business, making good on a strategy it outlined in April; HP unveiled a plan to provide back-end computing services to application service providers (ASPs). Intel will sell its services to Internet service providers, offering Intel-managed data centers and server farms for a menu of commercial application software and network services from its partners. "Customers can take advantage of a reliability promise that extends up through the application stack," said David Rowe, director of marketing for Intel Online Services. He said Intel assumed its managed applications will be most attractive to midsize companies. Intel revealed a variety of alliances with carriers, application software firms and Internet professional services firms. Specifically, Intel disclosed alliances with networking companies Uunet Technologies and Williams; application services firms Pandesic, and iCat; and services companies iXL, PricewaterhouseCoopers, Proxicom, Razorfish and US Interactive. One analyst questioned how competitive Intel can be. "If they're only offering the hardware, and partnering [with others] for implementation, they're looking at the old model...the glass house data centers of the '70s and '80s," said Colleen Boyar-sky, president and director of research at Robert Frances Group. Boyarsky said firms such as Corio and USinternetworking, both of which offer application outsourcing as well as application implementation, represent one less middleman, and therefore "are definitely going to be a less expensive solution for an organization." Both Intel and HP plan to offer service level agreements, which will be passed on to end-user companies. HP's reputation for systems management will play into the growing interest in renting applications across the Internet, HP officials said. "There's a lack of confidence in the robustness of the ASP model" among enterprise customers, said Frank Barker, general manager for HP's Computing Utility Services Division. HP services will focus on infrastructure pieces, up to the application layer. The exception will be messaging services, which will be offered "wholesale " to ASPs under an alliance with Microsoft around Exchange and Office2000. "As the enterprise space opens up, messaging is a great opportunity for enterprise CIO to test the ASP model," said Baker. Intel plans more than 12 data centers worldwide by the end of 2000. The service will be aimed at the United States, Europe, Asia and Latin America. The first of these centers, in Santa Clara, Calif., is already in operation and has customers, Intel said.