AT&T Unveils ASP Strategy - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


AT&T Unveils ASP Strategy

AT&T today unveiled its "EcoSystems for ASPs" program, under which it will offer software vendors most everything--including facilities, bandwidth, and support services--needed to become an application service provider and rent applications to users.

But for IT executives, the more immediate aspect of the strategy is AT&T's Intelligent Content Distribution Service, which it developed with Inktomi, Novell, and Infolibria, and storage services developed with EMC Corp.

AT&T has been quietly selling the former, which improves Web-site performance and will compete with similar offerings from Akamai Technologies, Adero, and Digital Island, as part of a controlled introduction that precedes an unspecified general availability. The company did say that service pricing will start at a flat $12,000 a month per 10 Mbps of bandwidth used to deliver a customer's Web-site content cached in the AT&T network. The service is available in 1 Mbps increments, with businesses that use more than 100 Mbps a month billed under a custom arrangement.

One analyst says the content-delivery service could be particularly attractive to customers. "Although AT&T's ASP strategy is robust and will attract interest because of its completeness, the content-delivery service is the hidden part of this plan that translates into something that customers will be able to benefit from first," says Daniel Briere, president of consulting firm TeleChoice Inc.

In addition to existing services such as hosting facilities, Internet backbone bandwidth, and co-marketing options, AT&T has also partnered with Sun Microsystems for application testing facilities.

Although AT&T is spending $250 million on infrastructure to address this market, its executives--like those at MCI WorldCom--claim they have no foreseeable plans to become an ASP themselves and sell software seat licenses for business applications or in any way touch hosted applications.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll