Cable & Wireless launches hosted services

Cable & Wireless (C&W) has unveiled a hosted application service for small to medium-sized businesses with partners Microsoft and Compaq.

The service, called a-Workspace, is aimed at companies with up to 1000 employees. C&W will host a range of Microsoft software such as Windows 2000, Office 2000 and Exchange 2000, running on Compaq's iPaq range of desktops as well as handheld devices.

The service will initially be available to US customers, and the UK service will go online next month. C&W is also working on adding software for customer relationship management, manufacturing and warehousing to its range of hosted services.

Stuart Keeping, vice president of marketing at C&W's applications business unit, said managing Microsoft applications can give smaller companies a headache. "They don't want to deal with the issues."

As part of the service, users get 800Mb of online storage with backup, online training and administrative services. Network connectivity is offered with managed firewall, and customers get unlimited internet access. Customer support is provided via helpdesk, email and the internet.

The service is available on a monthly per-user fee from $169 with Office 2000, and from $189 for Office 2000 and Exchange 2000 under a 24-month contract.

C&W plans to sell a-Workspace through resellers, and recruit an unlimited number of partners. The company aims to attract partners for its referral programme, whereby individuals or companies are paid commission if they produce successful leads, and recruit resellers that will offer a-Workplace as part of several offerings.

C&W also wants to recruit system integrators that are willing to carry out site assessments, and help migrate data and install systems, as well as solution providers that provide sales and system integration services.

Some analysts welcomed the announcement but said the service has yet to grow. Greg Blatnik, an analyst at Zona Research, said: "To be fully competitive with the established application service providers, C&W's total application package must expand to include best-of-breed sales force automation, ecommerce, supply chain management, and other applications aimed at the needs of small and medium businesses."