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Intel Predicts ASP Transformation

Looking to capitalize on the growth in application service provider offerings, Intel Corp. Tuesday detailed a new strategy executives say will take the ASP model one step further.

Intel Monday unveiled AppChoice, a new managed hosting service the company says combines the benefits of an outsourced hosting and gives businesses increased flexibility. AppChoice is a turnkey solution that includes the hardware, applications and operating system specified by the customer. In addition, Intel is providing the traditional components of Web and application hosting, including networking infrastructure and data protection.

The service includes round-the-clock monitoring from Intel's Santa Clara, Calif., network facility. Hosting centers are also located in Santa Clara as well as Virginia, England, Korea and Japan. A new center will come online in England in a matter of weeks.

Under Intel's program, customers don't have physical access to their equipment and software, as they do with co-location. However, they are provided a number of tools that facilitate remote management.

Intel has already committed more than $1 billion to improving existing data centers and opening new ones around the world by the end of 2001.

Speaking Tuesday at Internet World Chicago 2000, Mike Aymar, president of Intel Online Services, said the new offering doesn't mean the end of the traditional application service provider. Rather, it gives businesses looking to capitalize on the growth of the Internet and e-commerce a new option.

"Customers load their own applications and can be assured they will be here when needed. We see the customers demanding predeployed, reliable infrastructure," he said.

Co-location, Aymar said, will still be a viable option for customers who only want a facility that meets their space requirement and contains power and fire protection.

Aymar predicted Intel's "ASP of the future" will catch fire due to several factors, including a higher investment in research and development, proven economies of scale and integration capabilities with a number of software and technology partners.



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