Applications

One Way To Deliver Microsoft Applications

Vobix focuses on securing new business partners because hooking up with ISPs gets the company new end-users. Does your ISP have what it takes to sell applications to small business clients?

by Alex Goldman ISP-Planet Associate Editor [January 24, 2002]

Vobix is an Application Service Provider (ASP) that rents business applications to small businesses. Eric Paul, Director of the Vobix Managed Application Platform and a former ISP CEO, understands that ISPs are the best way to reach small businesses.

"In the past few months, we signed up many initial partners, rolled out marketing programs, and have continued to fine tune our software platform," says Paul, "but the focus is on securing partners because this gets us end-users and allows us to sell applications."

As the company reaches out to new clients, it is waiving the setup fees for any new client who fills out a survey.

The company rents Microsoft Exchange 2000, Microsoft Office XP Standard, Microsoft Office XP Professional, and the individual applications:

"Team Services is a very unique product," says Paul. "It's so original that it can be tough to get clients to see how it works. It's like an instant Intranet When clients do understand it, you see that wonderful reaction that's like a light bulb going on."

Whether or not Vobix is right for you depends on your customers. Paul says that his ISP clients serve businesses with 5 to 50 employees, and not all of them want to run on the ASP model. Some prefer to own their own software.

But for those that do rent, the automatic updates and upgrades of the ASP model make it very attractive. In addition, says Paul, small businesses will find that they can use applications that they would otherwise have to avoid because of Microsoft license fees.

"Microsoft Project is $500 off the shelf. If a small firm needs it to plan a single project that will last the entire year, they can rent it for a month much more cheaply, and then occasionally as needed over the rest of the year. We think this works for Microsoft too since people who would never buy the software are still using it."

Paul hopes that in the future, the rental of software will change software marketing completely. He says, "We think that as you see more ASP things happening, software companies will design smaller upgrades. If the standard way of buying software becomes rental, then software companies don't need to add new features to sell new products. Upgrades would become less obtrusive, and the OS design process itself would change."

Eric Paul founded the ISP Digicove Internet Services and will be a speaker at INT Media Group's ISP Business Expo 2002.

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