ASP enabler and eServices provider Agiliti today debuted its new distribution model for the ASP market and announced sales partnerships with software developers Great Plains and Microsoft Corp., Web-based developers eAlity and Agillion and e-commerce provider Intershop.
“We’re eliminating the biggest obstacle to acceptance of rentable business applications,” said Tom Kieffer, chief executive officer. “We’re freeing businesses from having to make deals with multiple single-application vendors in order to get all the software they need.”
As a result of their alliances with Agiliti, the sales partners can deliver custom packages of rentable applications to end-user customers regardless of where the applications are hosted, with the long-term goal of making business software rental simpler and less expensive. Sales partners meter each client and bill for application usage based on number of users, on hourly usage or on the individual features of particular applications.
“Our general observation is that this market has a ‘Host it and they will come’ mentality,” said Kieffer. “On the other hand, our new distribution model along with our partnerships offer a two-fold opportunity-the distribution play and the assistance in installing and supporting the application.”
Kieffer stressed to ASP-News that while many companies have started to shy away from the ‘S’ in ASP, service is an essential part of Agiliti’s model.
Agiliti targets companies with 100 to 2,000 users. “The real promise of ASPs has always been to medium-size companies that can’t afford to deploy the capability,” said Kieffer. “The shortage of IT personnel in our target market is driving the popularity of ASPs.” Kieffer said this should soon eliminate the need for IT personnel within medium sized companies.
Agiliti’s sales partnerships are based on a revenue sharing agreement. The company, acting as a distributor for its partners, receives a variable percentage based on the sale of each service sold.
In other news, the company raised over $16 million during its second round of financing in January. Investors included Norwest Equity Partners, The Rahn Group, Affinity Capital Management and Delphi Ventures.