Satyam, Computer Associates In Asp Alliance

Satyam Computer Services and the $6-billion New York-based independent software vendor, Computer Associates International Incorporated (CA) have entered into a 50:50 joint venture for application service provider (ASP) business. The two companies will initially invest $1.5 million each in the venture which will cater to small and medium enterprises (SMEs).

A joint statement by the two companies said the venture would provide SMEs with simple, cost-effective access to advanced e-business and back office applications with implementation expertise and support. The JV will focus largely on the domestic market.

While CA will bring to the table its proprietary technologies, Satyam's role will be to leverage its business knowledge, local experience and expertise to bag clients and tailor-make the solutions to suit them.

 

"Our partnership with Satyam is our first ASP joint venture in India. By removing the need for companies to individually procure, implement and manage their own infrastructure, we are encouraging faster adoption of new technologies driving e-business today," said Charles Wang, chairman and CEO of the CA.

The JV's initial offerings will include CA's `inter-biz' products, providing intelligent solutions for supply chain, financial and manufacturing applications. It will also leverage the Internet to deliver selected applications and services tailored to the requirements of SMEs. In addition to eliminating the need to purchase software licenses and corresponding hardware platforms, the joint venture's customers will be charged based on system usage.

"The joint venture greatly extends Satyam's capabilities of providing totally integrated IT solutions. It underscores the key components of Satyam's e-business strategy. Having had considerable expertise in the areas of information technology with its diverse interests and subsidiaries such as Satyam Infoway, this joint venture company will help

create an e-business environment that enables our customers to operate online quickly," said B Ramalinga Raju, chairman, Satyam.

Raju said from a strictly legal viewpoint, the JV agreement was between CA and Satyam Computer, while the strategic partnership would include Satyam Infoway.

"We will make use of Satyam Infoway's capabilities where we see a need. As the solutions are brought to the market, Satyam Infoway will have an important role to play," he said.

Citing a specific case, George Zacharias, chief operating officer, Satyam Infoway said: "Eventually the software has to be hosted and we see a role for Satyam Infoway there."