In return Sun will promote ITNET Business Direct as a preferred ASP solution by funding joint sales and marketing campaigns.

ITNET’s director of ASP Services Mil Milojevic says the company considered several options but Sun met all of its technology and business criteria.

Sun hardware is suited to the ASP model. It is renowned for high availability. It is scalable so can accommodate a few users or a few thousand equally well and dynamic partitioning means we can easily share one platform between different users securely and at less cost than alternative options.

Sun is a very net savvy outfit and clearly recognises the potential of the ASP model, Milojevic said.

Shanker Trivedi, VP Sun Microsystems, UK and Ireland, said: Increasingly the ASP model is the way organisations will use a wide range of applications. For them to be confident and comfortable using the service provider, they need to be confident the technology being used is available, scalable and reliable – three core features we build into all Sun products.

ITNET has worked with Sun for several years but this is the first formal agreement between the two. Milojevic says ITNET is keen to develop other partnerships with Sun.

ITNET is installing a range of Sun hardware at its data centres specifically for ITNET Business Direct. Sun Enterprise 10,000 platforms will be the core servers.

The first customer for ITNET Business Direct is London Borough of Enfield. ITNET is providing SAP finance, purchasing and payroll applications for 600 users from October.

Through ITNET Business Direct, ITNET offers applications on a pay-per-use subscription basis. It also provides full lifecycle management of SAP applications from consultancy through implementation to ongoing support and operations. SAP customers include Birmingham City Council, London Borough of Enfield, Forte, Cadbury International, Trebor Basset, Smith & Nephew, Pilsbury.