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Defining The Business Value Of Technology
February 28, 2000
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Applications hosted by Corio let users create online storefronts and consumer sites
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n a major strategy shift, application service provider Corio Inc. will expand its software portfolio to include E-commerce and enterprise resource planning applications from SAP.Corio founder and chief strategy officer Jonathan Lee has said that the company would offer only one vendor's application in each enterprise category: PeopleSoft for ERP, Commerce One for E-commerce, and Siebel Systems for customer-relationship management. Under the SAP deal, expected to be unveiled this week, Corio will add SAP's Accelerated e-shop E-commerce and R/3 ERP applications, a source says. Corio and SAP declined to comment.
Analysts say Corio's move reflects the need for ASPs to broaden their offerings to compete with software vendors who are becoming ASPs. SAP last week revealed it's spinning off an ASP company this spring, and PeopleSoft recently unveiled a hosting initiative. "It's positive to see these vendors in the market because it gives buyers more choice and legitimizes the ASP concept," says Joshua Greenbaum, a principal at Enterprise Applications Consulting.
Corio initially will offer SAP's manufacturing applications and eventually will add SAP's entire ERP application suite. On the E-commerce side, Corio will offer Accelerated e-shop to create online storefronts for both business-to-business and business-to-consumer sites. Customers will be able to create catalogs, track customer profiles and spending habits, manage sales order status, and customize their Web sites.
The SAP spin-off will manage SAP's relationship with ASPs, but it also will compete with them. Says Bernd Kilder, director of services marketing for SAP AG, "To play a significant role in the ASP market, we needed to create a separate company that can react quickly to the market and be flexible in its offerings."
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