ASP Industry Consortium Produces SLA Guide for End Users; Service Level Agreements Demystified for ASP Customers.

Business/Technology Editors

COMDEX Fall 2000

WAKEFIELD, Mass.--(BUSINESS WIRE)--Oct. 4, 2000

As part of its efforts to assist end users in accessing application service provider (ASP) computing solutions, the ASP Industry Consortium today announced the availability of a new guide that will help consumers understand the basics of service level agreements.

The "End Users Guide to Service Level Agreements" is available through the ASP Industry Consortium's web site, www.allaboutasp.org. It is a joint production of the Consortium's Service Level Agreement Sub-Committee, chaired by Eduardo Pontoriero, of Compaq Computer Corp., and its Education Committee, chaired by Ric Merrifield of Onyx Software.

"The service level agreement is one of the most important elements in the relationship between ASPs and their customers," noted Merrifield. "But what's become very apparent is that there is a tremendous need among end users for more information about what a service level agreement should include. Given the Consortium's core mission of education, it made sense to come up with a document that will help fill that informational need."

The "End Users' Guide to Service Level Agreements" will be specifically helpful to the small- to medium-sized business owner, providing information to help customers better understand and evaluate an SLA prior to working with an application service provider. Among the primary questions it addresses are:

--Why do I need an SLA?

--What types of information should an SLA contain?

--Will the addition of new users or applications affect the SLA?

--Can an SLA be customized to my requirements?

--Will a single SLA cover all aspects of the service I receive from an ASP?

The guide represents just the first step in developing SLA guidelines, noted Pontoriero. "In November, we plan to introduce a much more comprehensive document that will help ASPs develop service level agreements, addressing every key element that we know is important to customers," he said. That document will be unveiled in Las Vegas as part of the ASP Industry Consortium's "AllAboutASP Connection Center," an informational booth that will anchor the ASP Summit at COMDEX/Fall 2000.

In addition to the service level agreement guide, the ASP Industry Consortium provides a host of educational resources through its web site, including an "Application Service Provider Buyers Guide," common definitions for the ASP industry, a list of member companies, frequently asked questions and industry news and analysis.

About the ASP Industry

An application service provider manages and delivers application capabilities to multiple entities from data centers across a wide area network, giving customers a viable alternative to procuring and implementing complex systems themselves. In some cases, ASPs even provide customers with a comprehensive alternative to building and managing internal information technology operations. ASP customers also are able to control more precisely the total cost of technology ownership through scheduled payment schemes.

Though the ASP market is relatively new, computer industry analysts foresee rapid growth and multi-billion-dollar annual sales within the next few years. End users cross industry lines and include anyone from the small office/home office (SOHO) client to large corporations and from complex businesses to specific verticals.

About the ASP Industry Consortium

Founded in May of 1999, the Application Service Provider Industry Consortium is an international advocacy group of more than 650 companies formed to promote the application service provider industry by sponsoring research, promoting best practices, and articulating the measurable benefits of this evolving delivery model. Its goals include educating the marketplace, developing common definitions for the industry, as well as serving as a forum for discussion and sponsoring research. Technology sectors represented in the ASP Industry Consortium membership include Independent Software Vendors (ISVs), Network Service Providers (NSPs), Application Service Providers (ASPs), as well as emerging business models and other sectors supporting the industry.

Information on the ASP Industry Consortium - including a full list of member companies - is available at www.allaboutasp.org or by contacting the ASP Industry Consortium, Inc., 401 Edgewater Place, Suite 500, Wakefield, Mass. 01880; Tel: [phone]; Fax: [phone]; e-mail [e-mail].