January 13, 2005 — (WEB HOST INDUSTRY REVIEW) — Data center operator VeriCenter (vericenter.com) announced on Thursday that it has signed an agreement with sales force automation firm VanillaSoft to provide enterprise hosting and managed services.
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VeriCenter says the partnership enables VanillaSoft to reduce IT costs and improve customer service for it’s steadily expanding client base. The company’s target market consists of over 200,000 business locations employing more than three million US workers.
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“VeriCenter is now VanillaSoft’s virtual data center,” says VanillaSoft CEO Ken Murray. “VeriCenter enables us to focus on development as well as marketing and selling our ASP service, and its affordable solution costs us less than 10 percent of our revenues. We expect our hosting costs to trend downward when we scale to 100,000 users.”
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“Because of the mission-critical state of our services, we never considered hosting the ASP service ourselves,” says Murray. “We also are considering transferring our development environment to VeriCenter because of the state-of-the-art firewall protection it delivers.”
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VeriCenter says the market for on demand application services is expected to increase 44 percent a year over the next three years, according to research and advisory firm IDC.
