J.D. Edwards Launches Application Hosting Service

Denver-based J.D. Edwards & Co. today launched an Internet-based application hosting service for its enterprise resource planning and supply-chain management software.

The new JDE.sourcing service will also cover e-commerce and customer relationship management applications that J.D. Edwards resells under previous deals with vendors such as Siebel Systems Inc. in San Mateo, Calif., and Ariba Inc. in Sunnyvale, Calif.

J.D. Edwards said it will manage the applications directly for users while running the software at data centers operated by MCI WorldCom's UUnet Technologies Inc. backbone unit. "We don't want to be building data centers ourselves," said Mark Forgea, a business development manager at J.D. Edwards.

Until now, J.D. Edwards has left hosting of its applications to IBM's professional services arm and other outsourcing companies -- an approach that has snared about 40 customers in the last three years, Forgea said. He added that the new strategy will hopefully expand that number significantly, especially among midsize companies with limited information technology budgets.

Despite entering the hosting business directly, J.D. Edwards will continue to work with application service providers such as IBM, Forgea said.

Users who sign up with J.D. Edwards will pay a monthly hosting fee for each end user on the system in addition to buying or leasing the software itself, but specific prices weren't disclosed.

In a related matter, J.D. Edwards announced plans to resell online marketplace software developed by Tradex Technologies Inc. in Atlanta. J.D. Edwards is also making an equity investment in Tradex, which last month agreed to be acquired by Ariba. The acquisition is expected to be completed by the end of March.

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