Instant gratification

Value-added services served up hot and fast. That's what application service providers are selling, and service providers are taking them up on the offer.

Several companies at ISPCon in Orlando last month attempted to lure ISPs with offers that would turn them into ASPs in days, hours or even 15 minutes.

Some, such as vJungle and Application Park, are targeting the small and medium-sized business markets, while others such as C Me Run are taking the residential route. All are looking to pair with ISPs, portal operators and other service providers to extend their footprints and get more customers on board.

vJungle provides Web-based services to small businesses, said Chad Thompson, director of business development for vJungle. It offers core applications for free, including e-mail, calendaring and Web hosting, and then gives customers the option to pay for enhanced services such as the ability to integrate applications. "The core services definitely have sticky appeal," Thompson said.

vJungle offers its services directly to businesses through its Web site but also partners with ISPs, PC makers and content providers to expand its reach.

ISPs want to attract more users, keep the users they have and generate revenue, Thompson said. vJungle offers ISPs a scalable, flexible platform into which they can plug different content and services, he added.

Sharing a similar vision, Application Park offers a suite of business applications such as sales force automation, project tracking, expense tracking and recruiting software to small and medium-sized businesses. The company has been conducting tests with almost two dozen service providers since mid-March, with plans to officially launch service with four or five service providers in early June, said Aaron Sperling, president and CEO of Application Park.

vJungle and Application Park are striving to create co-branded partner sites that maintain a look and feel similar to the partner's main site.

Address.com, an ISP that serves the U.S. and Canada, recently signed an agreement to offer vJungle's core services to small businesses.

The services will attract traffic and generate new revenue for Address.com, which receives a bounty for each customer it sends vJungle's way, said Matt Connolly, vice president of business development for Address.com.

"It's definitely more important for us to add features and functions to our site that will keep our users at the site [and] will add stickiness on the site," Connolly said.

C Me Run hopes to separate itself from the ASP pack by allowing ISPs to target residential users.

Launched in February, the start up plans to deliver brand name software to the home, including games, entertainment and productivity titles, via partnerships with ISPs, telcos and Internet portals, said a C Me Run spokesman. A pilot test with two regional ISPs is planned for the near future, and the official service launch is slated for June.

Service providers will have control over prices and applications. Various packages, including 100 Mb/s of online storage, will be available for $15 to $40 per month. Additional storage space is available for a fee.

The company also is forging strategic partnerships with Internet device manufacturers that can add utility and content to their appliances with C Me Run's applications. The hope is that eventually companies will give away such devices in exchange for a signed contract tying users to C Me Run's services. "This opens up a huge market opportunity for the 50% of users who can't afford a PC," the spokesman said.