Among a list of strategic technology partners that Bear Stearns cited were Compaq, Sun and Microsoft. An application service provider hosts software on servers, and then rents or leases the application out across networks. The companies take revenues from the monthly charges. The ASP model is aimed at both large and small companies. It is a cheaper way for small, less capitalized companies to get access to pricey software, and it also gives companies a chance to try applications before they buy.
ASPs can also act as a company's IT department, which keeps the costs of technical help down.
The company's adjusted revenues assumed that several acquisitions had taken place on Jan. 1 1999. The company has four data centers in New York, Irvine, Calif., Calgary, Canada and England. A new program may ease their burden. Inc. All Rights Reserved.