ASP Breakaway Deals for Connectivity Services

APPLICATION SERVICE provider (ASP) Breakaway Solutions has joined forces with Internet connectivity company InterNAP Network Services, a move Breakaway officials anticipate will give its customers an advantage in leveraging the Internet.

The deal will enable Breakaway to give to its customers price benefits, according to Dan Ittycheria, vice president and general manager of Breakaway's ASP service line.

"Other ASPs have built their own private Internet connections," Ittycheria said. "But InterNAP is giving us a very aggressive pricing discount, so we can now offer competitive service at a lower cost."

For InterNAP the deal is its first foray into the potentially lucrative ASP market. InterNAP has built a $12 million business around selling connectivity to its Private Network Access Points. Current customers include the Nasdaq, Amazon.com, and Warner Brothers.

Joanna Makris, an analyst at the Yankee Group, in Boston, said that companies such as InterNAP fill a need. "Conditions at Internet metropolitan access points have become quite congested. Buying connectivity from vendors such as InterNAP allows you to bypass these bottlenecks," Makris said.

The core of InterNAP's solution is a proprietary software application called Assimilator, which runs on the Linux operating system. Assimilator takes a snapshot of network traffic on each of the 10 major Internet backbones and routes a customer's traffic accordingly.

"We give Breakaway the ability to ensure that a customer's connection, while riding on the public Internet, is on a managed network," said Tony Naughtin, president and CEO of InterNAP.

Breakaway's Ittycheria said the partnership would not allow his company to promise guaranteed levels of service, which is dependent on individual applications.

InterNAP Network Services Corp., in Seattle, is at www.internap.com. Breakaway Solutions Inc., in Boston, is at www.breakaway.com.

ASP opportunities for InterNAP customers* Advanced Radio Telecom, in Bellevue, Wash.: This broadband service provider could offer wireless connections that link to application service provider (ASP) services.

* Speakeasy, in Seattle: This Digital Subscriber Line service to consumers and small businesses could begin to offer ASP service via the InterNAP connection.

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