Siebel Systems Inc has struck an outsourcing deal with start-up application service provider Applicast to host its complete software line for other fledgling firms. The San Mateo-based office software vendor will have a migration path as it grows through its ASP partnership with USinternetworking, which targets medium-sized companies.
ASPs host business applications for customers at data centers. Outsourcing proponents contend that renting remotely-hosted applications over the web makes sense for infant companies without the resources to install and manage business software in- house. The market is tipped to grow to $2bn by 2003 by industry watcher, International Data Corporation.
Under the deal announced Tuesday, start-ups will license the Siebel software by paying a monthly fee between $5,000 and $15,000 to Applicast. Users will pay a one-time fee of around $50,000 to $150,000 to set up and configure the software. Bruce Cleveland, vice president of alliances for Siebel, said the deal enabled the company to target start-ups primed for explosive growth. We see it as a long-term perpetual revenue stream, Cleveland said.
