When broadbandprovider @Home Corporation and Internet firm Excite joined forces in May 1999,corporate controller Robert Lerner immediately recognized that integratingtechnology was a top priority. And trying to tackle the task in-houserepresented a formidable, if notimpossible, challenge. A previous acquisition had resultedin integration obstacles.
Financial systemscouldn’t handle the companies’ combined data.
“We had apreconceived notion that an outsource option was a better match,” Lernerexplains. As a result, Excite@Home turned to Corio’s Intelligent Enterprise, asuite of solutions that includes financial management, distribution, and humanresources functions, all powered by PeopleSoft. The ASP approach provided a morescalable and flexible ERP solution than the company could build on its own.
Excite@Homeevaluated various ERP applications and ASPs and found that Corio’s ASP hostingmodel would result in a more favorable total cost of ownership than itcould achieve by building a solution internally.
“The cost of theCorio model was based on the number of users. Our old system was tied to arevenue-growth model,” says Lerner.
Today, the firm,which saw its employee base triple in 1999 and early 2000, has become anInternet powerhouse. Says Lerner: “In terms of efficiency and scale, the [ASP]model made more sense.”
Workforce, February 2001, Vol80, No 2, p. 54 Subscribe Now!