By Peter Conmy
The frenzy of activity towards the establishment of local ASPs has created a furore in the channel which is leading local developers away from the real opportunity.
The frenzy of activity towards the establishment of local ASPs created a furore in the channel which is leading local developers away from the real opportunity if the example of one Los Angeles-based software developer is to be examined.
GlueCode is a new type of service provider that offers integrated applications on a subscription basis.
Last month, the company said it will offer a packaged suite of pre-integrated business applications to be sold on a subscription basis to dot-coms and enterprise clients, as well as to ASPs.
“What we are deliberately not trying to become is another ASP,” said Winston Damarillo, CEO of the company. “We intend to make [ASPs] more of a channel.”
GlueCode’s offering will be ready later this year, and the company is currently finalising OEM deals with software firms that have developed directory, authentication, calendaring, mail and database applications, said Damarillo.
The firm’s “value-add is the technology that sits between and above these applications so they begin to behave like one suite,” he says.
Damarillo says he expects to disclose the identities of some of GlueCode’s partners and customers in the next two months.
The most critical revenue stream of systems integrators does not come from researching which applications will integrate well together in customer engagements, Damarillo says. Rather, e-business firms “are going after revenue per consultant,” he says.
“R&D activities are non-revenue-generating,” Damarillo says, adding GlueCode’s offering will let e-business integrators “convert those resources to billable hours.”