PeopleSoft to Announce App Hosting Plans

FRAMINGHAM (03/01/2000) - PeopleSoft Inc. next week plans to announce that it's ready to start hosting its business applications for end users who want someone else to manage the software for them.

The Pleasanton, Calif.-based software vendor promised last September that it would get into the application hosting business this year. Craig Conway, PeopleSoft's CEO, said during a teleconference yesterday that the hosting plans have finally been nailed down and will be unveiled next week.

PeopleSoft's move follows a similar announcement last week by rival SAP AG.

SAP, the top vendor of enterprise resource planning (ERP) systems, said it's setting up a new company that will rent R/3 and its other applications to users.

Until now, SAP and PeopleSoft had left hosting of their software to outsourcing firms and application service providers. By jumping directly into the hosting business, they're joining Oracle Corp., which began offering to host its applications last year.

During yesterday's teleconference, PeopleSoft also announced plans to ship two new applications for use in managing companies that do consulting work and other professional services.

Included is a contracting application and a package that automates the process of analyzing a consulting workforce and assigning employees to projects.

Pricing wasn't disclosed on the new software, which is due to ship by midyear as part of a previously announced upgrade of PeopleSoft's ERP system.

PeopleSoft said it will combine the two new modules with some existing applications aimed at consulting firms to create a new package of software called Professional Services Automation.

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