New Application Service Providers (ASPs) could be one of the big beneficiaries - but not as big as IBM in the new NetGen initiative. As well as ASPs, new Internet Service Providers (ISP) Portals, Web Hosters, Start ups and telecommunication companies can all apply to take part in NetGen. The aim of the scheme, IBM claims, is to enable Australian e-businesses to achieve sustainable growth. NetGen customers will benefit from advice, partnership and technology from IBM. To implement the program IBM has formed partnerships with Web hosters, venture capitalists and incubators.
Initiatives such as this show a mature attitude towards the growth of the Internet as it enters its post shake-out stage. Companies like IBM feel they need to take a much larger part in the Web's growth, one that will enable them to benefit from it over the long term, rather than quick sudden sales. "It is no longer just about getting to market first; it's about building a sustainable, successful business model with a reliable technology infrastructure underpinned by sound business development advice and support," Peter Hreszczuk, Country Executive for NetGen in Australia said.
IBM, it would appear, are well placed to ensure a continued base of product buyers, especially in the all-important high end hardware market, as well as access to bright new ideas, some of which IBM hopes will give it a chance to innovate and lead the market. "We believe they will need to buy technology," Hreszczuk said.
It's not all one way though, if a start up is developing new software they will be given access to IBM's Australian laboratories for testing - although, "we like to see what they are doing and quiet often it can be of value to us," Hreszczuk said. A sign of what sort of company will be seriously considered was this hint: "We will typically invest in companies that have some intellectual property."
There is no initial fee for joining stage one of the five phase scheme, although for an ASP model, the customer will be expected to sign an agreement that states that it will be on IBM equipment. For other sectors such as telecoms, start up or a portal, the IBM-exclusivity agreement does not apply. "There are no exclusive deals, we feel the market should decide" Hreszczuk said. Although, with access to the IBM network of companies it is inevitable that new ventures will be able to get better deals on IBM hardware than rival brands.
