Taking its first steps in the budding Application Service Provider market, Computer Associates International Inc announced yesterday a joint venture with Taiwanese PC maker the Acer Group that will create another new entrant in the ASP arena. The venture, as yet unnamed in English (there is a Chinese name), is expected to be up and running sometime in the first quarter of next year. Dr Wenwey Hseush, who is currently vice president of R&D for CA in Asia, will assume the role of president of the new entity.
The venture will use the internet to deliver selective applications and services to mid-size companies, allowing them to take advantage of expensive software that used to be the privilege of large companies. CA said this will eliminate the need to purchase software licenses and corresponding hardware platforms up-front as clients will be charged based on what they use.
The two partners will couple CA’s systems management software with Acer’s computing and communications facilities and reseller networks under the ASP framework. Initially, the venture will offer localized accounting and enterprise resource planning applications from CA’s joint venture partners in Taiwan – local companies which have actually licensed the apps from CA itself and optimized them for the domestic market.
The $3m initial capitalization for the new firm was split evenly between the two companies and each holds 50% of its shares, CA chairman Charles Wang said at a signing ceremony. Wang added that the Acer deal is CA’s second overseas ASP venture, following the announcement of a similar one in China earlier this week with Shanghai-based Fudan Grand Horizon Information Technology Co Ltd. That venture, called Guanghua-CA, will manage and host localized applications to small- and mid-sized companies in China. Other similar ventures are planned later, Wang said. รก
