''Software is Obsolete!''; Ketera Technologies Says ''Software is Obsolete -- On Demand is In Demand''.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 20, 2003

Saying that customers are tired of the hidden costs and headaches associated with long, drawn out implementations of enterprise software, Ruby Sahiwal, COO of Ketera Technologies declared, "Software is obsolete!"

Sahiwal said the evidence was clear in the quickening growth of "on demand" solution providers such as Ketera and Salesforce.com; increasing customer skepticism about enterprise software as evidenced by lagging sales; and the rush to develop on demand services by major software stalwarts such as Oracle, Siebel and Microsoft.

"Software is obsolete! Delivering business process solutions as an on-demand service, over the Internet is the way of the future," said Sahiwal. "Customers don't just want the software to solve a problem or address a business process. They want a complete solution."

Sahiwal, a former executive at GE, i2, and McKinsey, was named one of the select "Pros to Know" by iSource Magazine in its March 2003 issue.

On Demand Service vs. Software

According to industry analysts professional services costs to implement enterprise software can typically run two to three times the cost of the software license fee itself, and implementations can take as long as 18 months. By comparison, on demand services typically can be turned on in a matter of days, usually within 30 days, and the costs are dependent on how much the solution is used. On demand services can cost as little as one-tenth of the total cost of implementing enterprise software.

"On demand is in demand," exclaimed Sahiwal. "Because when customers buy a technology solution, they expect just that, a solution, not a raft of new problems, headaches and hidden costs."

On demand has evolved quickly, but most technology companies, including industry-leader IBM, are betting it will take-off and become a permanent service fixture with U.S. companies. On demand is often conceptually compared to utility services such as electricity and telephone service, and IBM in its multi-million dollar advertising campaign refers to it as "the next utility."

"The early 1990s saw the ERP and software approach which required businesses to pay large up-front software fees and ongoing maintenance fees," said Sahiwal. "The late 1990s saw the ASP model quickly emerge and quickly fizzle because it did not go far enough."

"It is not enough to create a software solution - and still not enough to simply host the solution," said Sahiwal. "Businesses want the whole package, the complete set of services required for a success. On demand has staying power because it looks at a business problem from the customer's point of view."

Spend Management On Demand

According to Sahiwal, spend management serves as a prime example of a business process for which on demand service has significant advantages over traditional software implementation. Supplier enablement, and general solution deployment pose challenges that slow the implementation of software and dramatically increase the costs of such solutions.

Ketera Technologies, founded by American Express and an IBM business partner, offers an on demand spend management service that provides all the applications, technologies and services needed to overcome these challenges - and immediately reap the benefits and cost savings of spend management.

Ketera Spend Management includes applications for spend analysis, sourcing, procurement, payment & reconciliation and supplier enablement. The Ketera difference is its delivery model which includes the 'heavy lifting' services required for successful spend management, including supplier catalog management; supplier transaction enablement; hardware infrastructure, project resources, system administration and solution upgrades.

Ketera customers - including CNF, Kennametal and Vought Aircraft- demonstrate a growing trend among established businesses of saying 'no' to software and choosing on demand instead.

Ketera In Demand

"Just as Salesforce.com has challenged Oracle and Siebel in the CRM space, Ketera Technologies is ready to shake-up the incumbents in the spend management space," said Tim Minahan, VP of Supply Chain Research at The Aberdeen Group.

"Ketera's service offering comes at a time when enterprises are wary of big technology investments and are looking for low-risk solutions that can enhance core business processes and deliver quick and sustainable cost savings and performance improvements. Ketera overcomes many of the cost, resource, and skill burdens that have limited the adoption and results of spend management programs," said Minahan.

"We always had confidence in our model and in our commitment to deliver spend management as an on demand service," said Brian Desmond, Senior Director of Marketing at Ketera. "But on demand is really catching on now. IBM has anticipated and set trends quite well in the past and, as you know, IBM is a huge proponent of delivering technology on demand as a business service."

Desmond recently presented his ideas regarding on demand spend management at the annual IBM PartnerWorld event in New Orleans, where more than 3,000 executives from leading businesses around the world gathered to network, exchange ideas and learn about IBM's future plans and strategies. Desmond predicted that other spend management providers would have a difficult time catching up to the Ketera-IBM model of on demand spend management service.

"Isn't it ironic that software companies claim to help customers to better manage spend, at the same time forcing those companies to spend millions of dollars in upfront fees," exclaimed Desmond pointing to SAP, PeopleSoft and Ariba, as the main culprits. "Ketera is changing the game by providing the same value as software at a fraction of the cost," Desmond continued.

About Ketera Technologies

Ketera Technologies provides spend management solutions as an on-demand service, providing companies with the technology and services needed to control and reduce corporate spending at a low cost of ownership. Ketera Spend Management includes applications for spend analysis, sourcing, procurement, payment & reconciliation and supplier enablement. The Ketera difference is our delivery model which includes the 'heavy lifting' services required for successful spend management, including supplier catalog management; supplier transaction enablement; hardware infrastructure, project resources, system administration and solution upgrades. Ketera Technologies is an IBM business partner, providing technology for certain IBM e-business on demand offerings.

For more information about Ketera Technologies and the Ketera Spend Management suite of services, please visit www.ketera.com.