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Allegrix's ASP-in-a-Box Creates Instant Channel ASPs.

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Aug. 22, 2000

Allegrix Accelerates Growth of Channel ASPs with Business

Assessment Tools, Applications Enablement and Data Center Hosting

Services

Allegrix(tm), Inc., the ASP infrastructure provider for the channel, today announced its ASP-in-a-Box(tm) initiative for channel solution providers, including ISVs, VARs, and systems integrators. The Allegrix ASP-in-a-Box offer is the first of its kind, giving channel-based solution providers a complete business assessment kit for moving their business critical applications into the ASP model. ASP-in-a-Box, combined with Allegrix's ASP-enabling services, which include application enabling services, an enterprise-class data center infrastructure, catalog applications, and professional and marketing services, gives channel partners everything they need to become instant ASPs.

Summit Strategies Industry Analyst Amy Levy said, "Allegrix's strategy to be a 'pure play' ASP infrastructure provider to the existing channel is right on target. Realizing that ASP customers would prefer to trust their business to an application-hosting provider that already knows and understand their needs, Allegrix created its ASP-in-a-box solution that enables ISVs to quickly morph their channel partners into ASPs. Furthermore, resellers like the solution because it enables them to offer additional value-added services to their customers. By relying upon proven business relationships, Allegrix's value proposition appeals intelligently to both ISVs and resellers."

"We are excited about the opportunity to partner with leading software suppliers and integrators to roll out our Allegrix ASP-in-a-Box channel initiative," said Chris Clabaugh, president and CEO of Allegrix. "The program will be a big hit with channel solution providers because it gives them the data points they need to adapt to this new application delivery method. Adding that to our highly secure, and scalable data center infrastructure, we can put applications of any kind online in about five days making them instant ASPs."

Benefits of ASP-in-a-Box and Services

With its ASP-in-a-Box and infrastructure services, Allegrix delivers a quick-and-easy way for channel solution providers to take their current customers and prospects to the ASP computing model. Customers benefit from a reduced risk of technology obsolescence and easier adaptation of new technologies, guaranteed performance levels and uptime, faster network response time, instant scalability, and reduced IT staffing issues. In addition, the channel solution providers benefit from a faster time to the ASP market, an opportunity to reach new customers in new markets, a high percentage of recurring revenue, an increased return on investment, and the ability to offer customers additional value-add services and applications.

Key Elements of ASP-in-a-Box

Key elements inside the box include ASP information and tools for the key departments in ISV organizations: sales, marketing, engineering and finance. Each `section' of the box is designed to provide these departments with the knowledge they will need to quickly become an ASP. Highlights of the information included in the box are:

Customer Savings Analysis and Margin Analysis Tools End-user businesses that are still questioning the benefits of subscribing to applications, as opposed to purchasing them, can use the ASP-in-a-Box Customer Savings Analysis to understand how much they can save by subscribing to the ASP model. The Margin Analysis Tool demonstrates how channel solution providers can increase their margins and achieve a more reliable revenue stream by becoming ASPs. It also assists them in converting their current application sales price to a subscription-model price.

Sales-Force Compensation Models

Although the ASP model presents new revenue opportunities for channel solution providers, it also presents new challenges, especially in creating sales-force compensation plans. This is because the application purchase price previously paid up-front (with appropriate commission for the salesperson) is now spread out across an indefinite period of time with the subscription model. The sales compensation model must account for this so that the sales force doesn't feel that it has been shortchanged by the new business model. ASP-in-a-Box provides channel solution providers with several sales compensation models, each designed to achieve different business goals while adequately compensating the sales force for reaching those goals.

SLA Templates

The Service Level Agreement (SLA) is a key component in the decision process for the end-user business and should cover availability, performance and recoverability issues. ASP-in-a-Box provides a customizable SLA template that channel solution providers can use to more effectively guide these discussions with the end user.

ISVs Support ASP-in-a-Box Initiative

Progress Software is the first of several ISVs in the queue to join Allegrix's ASP-in-a-Box program. The global provider of software products and services company has partnered with Allegrix to create the ASP-in-a-Box for ASPEN program, the latest component of Progress Software's ASP ENablement (ASPEN(tm)) Program, which currently features more than 200 ASPs building, deploying and marketing ASP-enabled applications. Allegrix expects to welcome new ISVs to its ASP-in-a-Box program later this month.

"The ASP-in-a-Box initiative from Allegrix is the perfect complement to Informix's products, ASP initiatives and channel programs," said Steve Shoaf, ASP Programs Director for Informix.

"Having recently achieved the status of an IBM Hosting Advantage Partner, Allegrix is well prepared to support Avnet Computer Marketing, Hall-Mark Division partners for their ASP enablement and hosting needs," said Mark Martin, vice president of sales, Intel Architecture Business Unit, Avnet Computer Marketing, Hall-Mark Division. "We are now looking forward to enhancing our relationship with Allegrix through the innovative ASP-in-a-Box program to help our partners fully understand the business issues and advantages of adding ASP-based solutions to their existing offerings."

"The ASP-in-a-Box initiative is an ideal complement to Allegrix's certification as a Great Plains Data Center," said Jim Traynor, general manager, Great Plains ASP services. "The fact that Allegrix can help our channel partners better understand the business issues of moving to an ASP model, and host Great Plains applications in a high-end data center environment, will provide incremental opportunities for all our partners."

"Allegrix's ASP-in-a-Box program will have an immediate and positive impact with our channel partners. The program is designed to give our channel partners an instant knowledge in the ASP business model, as well as accelerate their entry into the ASP business by utilizing Allegrix's Web-enabling and hosting services. By moving to an ASP model, our channel partners can get ready access to the latest UNIX, Linux and Tarantella solutions with minimal effort and expense," said Doug Warrilow, director of channel operations for SCO's UNIX Systems Division.

About Allegrix

Allegrix, the ASP infrastructure provider for the channel, offers ASP-enabling services including application enabling services, data center hosting, catalog applications, and professional and marketing services for VARs, ISVs and medium to large organizations. By partnering with Allegrix, and utilizing Allegrix's ASP-in-a-Box channel program, ISVs and VARs can instantly become ASPs, enabling them to tap into new markets, reach new customers and create new revenue opportunities. For more information on becoming an ASP today visit us at www.allegrix.com.

Note to Editors: Allegrix is a trademark of Allegrix, Inc. in the U.S. and other countries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
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Date:Aug 22, 2000
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