AOL Awards Omniture ASP Deal

America Online has embraced the idea of software as a service by
awarding a multi-year contract to Web analytics provider Omniture.

AOL will use Omniture’s SiteCatalyst, a hosted Web analytics system
that helps customers analyze data across hierarchical and relational
databases. Omniture, which beat out 20 other Web analytics providers for the deal,
is expected to help AOL conduct real-time analysis of traffic across its Web
properties in order to improve its feedback and understanding of how
its sites are used.

Eric Eichmann, senior vice president of inventory, planning and operations
at AOL, said the company’s size and privacy standards were key
considerations for the contract, in addition to AOL’s goal of expanding its
real-time feedback and analysis.

Omniture considers the deal, which is estimated to be worth more than $5 million a year for each
year of the contract, the biggest
application service provider contract in the ASP sector. It comes as vendors
increasingly shift to offering software on-demand, as well as in light of the recent
IPO of online CRM provider salesforce.com .

Josh James, CEO of Omniture, said the deal helps illustrate that
on-demand delivery of software is mature and ready for prime-time.

“We’ve been doing this for a long, long time,” said James.
“In this industry, ASPs make so
much sense. It’s really a validation of the company and what we do.”

The hosted platform SiteCatalyst is configured to provide real-time data
from every corner of the company’s business. In addition, the system
integrates both external data — aggregated attributes, such as pricing plans
and download times — and real-time usage information from third-party
platforms for an enterprise view of activity and segments.

“It’s not about collecting the data,” James added. “The data’s always
been there. Our specialty is getting the right information in the right
person’s hands in an organization when someone wants the information in
order to do a better job.”

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