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IBM Expands Efforts to Help ISVs Deliver Software On Demand

On Demand Program Enables 60 Leading Application Providers to Deliver Software as a Service to Hundreds of Customers Worldwide

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SOMERS, NY - 30 Sep 2004: IBM today announced that it is working with 60 leading independent software vendors (ISVs) and application providers to assess, transform and deploy their software as a service to hundreds of customers and thousands of users worldwide. The company also announced that it has expanded its Application Enablement Program (AEP) to deliver new enablement resources to help Business Partners plan and prepare for the business impact of delivering software on demand.

As customers investigate new options in how they acquire and pay for software, ISVs are being asked to deliver their applications in new and less-costly ways. According to analyst firm IDC, sales of subscription-based and hosted software will grow at 17 percent and 26 percent, respectively, through 2007. By delivering software on demand, application providers can tap into the growing market for subscription-based and hosted applications while experiencing faster deployment time and shorter overall sales cycles.

Today's announcement includes the addition of new financial workshops, virtual education resources, tool kits, sales kits, solution templates and platform guides to help select IBM Business Partners transform their business models and adopt new and less-costly ways of delivering applications to customers.

Making the Move to Selling Software on Demand
The transition to selling software on demand and as a service, including the adoption of monthly- and usage-based pricing, can be a difficult course, particularly for companies whose business models rely on the ebb and flow associated with traditional license deployments.

To help Business Partners better understand and prepare for the financial and technological impact of selling software as a service, AEP uses an extensive six-step enablement process, from qualification and market opportunity assessment to customer deployment. The program focuses on both technology and business transformation, including expanded financial modeling tools that help Business Partners plan for the immediate and long-term impact of selling software on a subscription basis.

IBM has expanded the enablement resources available to ISVs during the transformational phase of the program. Participants will now complete a host of new e-Architect workshops and training sessions on new and developing technologies, such as Grid computing and Web Services. In addition, experts from IBM Business Consulting Services will be made available, as will development and testing capabilities at IBM Innovation Centers.

Intacct Corporation, a leading provider of on demand ERP applications and a recent AEP graduate, has seen its customer base double and its revenue soar by 200 percent since joining the program. By saving on traditional software deployment costs, Intacct has also been able to invest more in R&D, growing its own portfolio from a basic accounting solution to a full suite of ERP On Demand offerings, from general ledger, billing and accounts payable to order entry, inventory control and purchasing applications.

"Through IBM's Application Enablement Program, we're able to help customers enable new business models by collaborating with employees, customers and partners in a single, on demand environment," said Robert J. Jurkowski, CEO of Intacct. "Today, Intacct offers the only Web-based, multi-entity ERP solution that can be tailored to the unique business requirements of small and mid-size companies, ISVs and outsourcers. Allowing customers to instantly adapt to market dynamics, Intacct ERP On Demand brings competitive advantages most premise-based solutions simply can't match."

Navis Logistics Network, a custom packaging and shipping company based in Colorado, was one of the first customers to adopt Intacct's ERP On Demand solution. Hosted on secure IBM data centers, Navis Logistics has converted its headquarters financial systems to Intacct's ERP applications as part of a phased rollout to some 150 franchised outlets. Intacct's Web-delivered solution is integrated with NavisConnect, Navis Logistics' Web portal. The on demand solution from Intacct streamlines back-office operations for Navis Logistics and its franchisees by automatically collecting royalties and integrating accounting with daily logistics transactions. The system also enables franchisor and franchisees to capitalize on market opportunities by monitoring operations in real time.

"With the joint on demand solution from Intacct and IBM, we have tremendous ability to collaborate with franchisees on managing key metrics such as margin and pricing," said Marvin L. Storm, president and CEO of Navis Logistics Network. "We are able to forecast revenues more accurately and analyze the data by regions to spot opportunities and issues earlier and more consistently. And, since we're all on the same software configuration and chart of accounts, we can help franchisees with financial management and technical support more easily."

The breadth of IBM's technology businesses, particularly its services and Grid computing expertise, make AEP a truly unique program in its capability to help a variety of IBM Business Partner types open up new routes to market and adapt to sweeping changes in how customers buy enterprise applications. In addition to ISVs, the program is helping established utility service providers (USPs) expand their existing routes to market and deliver more secure and reliable services on demand to customers.

Another graduate of the program, Pay By Touch, is a USP that offers biometric payment solutions that allow retail shoppers to pay for purchases using in-store finger scanning systems. The supporting IT infrastructure for the Pay By Touch system, including security-enhanced hardware and software that processes and stores shoppers' financial data, is provided on demand by IBM, allowing their customers to pay only for what they use, when they use it.

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