Satyam, CA in JV

BANGALORE: Satyam Computer Services has signed an equal joint venture (JV) with US networking company Computer Associates Inc (CA) to set up an application service provider (ASP) for small and medium enterprises (SMEs). This is the first JV for CA in the country, and the total investment in the project would be $3 million. 

At the launch, CA chairman and chief executive officer Charles Wang said, "One of the major drivers of e-commerce business will be ASPs as in the changing world, the model that is gaining the most widespread acceptance, is outsourcing of software." An ASP will help to drive the e-commerce market in India as corporates need not spend their resources in software licensing, hardware platforms or in employing IT support staff if they use the services of an ASP for an e-commerce initiative, he said.

An ASP is said to host a range of software and also provides services in terms of infrastructure to enterprises that do not want to buy these services outright. The corporate need not invest in hardware or software to get the benefits in planning that accrue from an ERP package. Similarly, other software packages such as for accounting, etc can also be hosted by the ASP for use by small and medium enterprises. An ASP unlike a software package seller charges a minimal amount that is linked to usage.

According to Satyam Computer chairman B. Ramalinga Raju, "CA will provide expertise in building the infrastructure and the technology required for the venture. Satyam will bring to the venture its abilities in customizing applications for the local market." Software applications will have to be developed or adapted for the Internet or the ASP, he added. Initially, the ASP will provide CA’s range of InterBiz products for supply chain management, financial and manufacturing applications. The JV will also use CA’s Jasmine technology for deploying e-business solutions.

The business plan for the ASP project is under development. Commenting on the requirement of bandwidth for the success of an ASP, Mr Wang said, it is not a hindrance and the way technology is moving it will not be a stumbling block as the application is for SMEs and thus do not require broad banding.