Open Text Extends Market Reach with ASP Strategy

Collaborative intranet, extranet and e-business applications provider Open Text Corporation yesterday announced an ASP strategy to create a worldwide network of ASP partners.

The company hopes to extend its market reach through the Affinity ASP, targeting small and medium-sized enterprises (SMEs) through its ASP partners. SMEs are now investing in the development of e-business applications by using the hosted services model to accelerate delivery, minimize risk and reduce overall cost of ownership.

Last month, Open Text Corporation (OTEX) announced its first ASP partnership with KPNQwest,, the leading pan-European data-communications company created from a joint venture between Qwest Communications International Inc. and KPN Telecom BV.

The agreement enables Open Text to provide and jointly market Livelink(R) through KPNQwest’s pan-European macro-capacity fibre-optic network and European CyberCentres to the SME sector across Europe.

By establishing a worldwide, partner-based ASP channel for collaborative e-business applications, Open Text will create a go-to-market strategy that will compliment and extend the Company’s core product business while providing new recurring and incremental revenue streams. In addition to offering Open Text’s Livelink via a network of global ASPs, instant intranet applications and the content services (including BusinessWeb) will also be available through the ASP partner network.

“The ASP market is exploding as more and more companies are demanding cost effective ways to deploy and support their mission critical e-business applications,” Tom Jenkins, chief executive officer, Open Text, said. “The completely Web-based nature of Livelink enables Open Text to provide a unique group of on-line products and make them available to both our emerging ASP and established installed base of customers.”

Bill Forquer, formerly president of Information Dimensions, Inc., will head up the ASP initiative. The ASP initiative will leverage more than a year of work the Company has been doing in the online services market. Over the past several months, Forquer and his team have been piloting Livelink OnLine, the Company’s first hosted service, with a number of Livelink customers, including Hewlett-Packard, GE Information Services, and Shell Services.

“The ASP market is one of the fastest growing segments of the e-business market today, ” said Steve McClure, Research Vice President at IDC. “By establishing a global network of ASPs, Open Text gives small and medium-sized companies the opportunity to realize the same business efficiencies the Global 2000 have been enjoying for years, by deploying cost-effective, collaborative, e-business applications.”

Open Text is currently receiving applications from prospective ASP partner. ASP partners make volume purchases of Livelink on a per user per month basis and then resell that access packaged as a collaborative e-business application service. A more specific pricing structure has not been announced yet.

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