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Microsoft Presses On With Its Hosting Push

Vendor invests $50 million in Digex; readies new licensing, training programs.

By Mary Jo Foley, Sm@rt Reseller ©
January 12, 2000

Microsoft is one of the few software vendors that doesn't want to be an application service provider (ASP). That said, Microsoft is continuing to work to expand its position as a supplier of products and services to ASPs.

On Wednesday, Microsoft announced it had made a $50 million investment in Internet-backbone provider Digex. Compaq Computer also made a $50 million investment in the Beltsville, Md., ASP services provider.

In exchange, Digex committed to building a suite of hostable products based on Compaq ProLiant servers, plus Microsoft software. The Digex-branded suite will feature Windows 2000, Microsoft BackOffice and Office applications and support for various connectivity interfaces, such as Microsoft's BizTalk and XML. The suite should be available before the end of calendar 2000, Digex says.

Microsoft: We're Reaching 'Critical Mass'

Microsoft also announced Wednesday that it is readying a number of training, certification and consulting services programs to help ASPs get up to speed with hostable versions of Microsoft products.

"We're going to give ASPs early access to code, do more training, offer high-availability services via MCS [Microsoft Consulting Services] and introduce other ASP-enablement programs" in the coming months, says notes Kevin Breunig, group product manager with Microsoft's server applications group.

On Wednesday, Microsoft reiterated that its Exchange Server 5.5 is available on a "per user/per month" basis to interested ASPs, via Microsoft's ongoing commercial-licensing pilot program. Exchange isn't the only offering that's being tested by the 15 ASPs signed up for the program, says Breunig. ASPs who are part of the pilot also can offer hosted versions of Windows NT 4.0 Server, Office 2000 and Microsoft's various BackOffice products.

"We're reaching critical mass, in terms of the number of customers deploying Exchange in a hosted environment," claims Breunig.

Breunig added that ASPs will find even more to like about the next version of Exchange, code-named Platinum, which is slated to ship in the first half of 2000. He cited features such as universal inbox support, Web store, document services, wireless device and unified messaging capabilities as features that will increase Exchange's appeal to ASPs.

Novell Steps Up Hosting, Too

On Tuesday, Microsoft rival Novell stepped up its commitment to the hosting space by acquiring JustOn Inc., a provider of hosted Internet file sharing and publishing services. Novell committed to integrating JustOn's services with Novell Directory Services and other "Novell In-the-Net Services" products, including caching, identity management and messaging.

Terms of Novell's acquisition of JustOn were not disclosed.

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