Accenture Technology Ventures Takes Equity Stake In Jamcracker To Build Single, Aggregated Platform for Internet Applications and Services
NEW YORK and SUNNYVALE, CALIF., October 24, 2000 – Accenture and Jamcracker, Inc. today announced they are working together to enable businesses to employ an array of superior Web-based applications and services through a single, easy-to-use service delivery platform. Accenture is a leading global management and technology consultancy, and Jamcracker provides a complete web-based service delivery platform for information technology (IT) and business applications, services and support. Accenture Technology Ventures, the venture capital unit of Accenture, has taken an equity stake in Jamcracker.
As part of the alliance, Accenture will collaborate with Jamcracker – which aggregates best-of- breed IT and Business applications and services from various providers into a single, scalable web-based platform – to develop a new service that will integrate functions ranging from billing and sales force automation to human resource management. Initially, Accenture and Jamcracker will focus on the U.S. market with the intention of expanding rapidly to Europe and other regions.
Accenture has developed this alliance as part of a broader strategy for enabling the delivery of netsourced solutions to their clients. Accenture will help expand Jamcracker’s solution by enhancing the company’s delivery and support capabilities and providing a business channel to the Global 1000 market. Additionally, the two firms will work together to expand the portfolio of Application Service Providers available through Jamcracker’s service delivery platform. This will likely include future ASP offerings developed by Accenture and other alliance partners.
"While the delivery of software applications and services via the Internet is helping companies increase speed and efficiency, many senior executives are finding the process of evaluating, acquiring, deploying and managing multiple ASP products to be complex and difficult," said K.B. Chandrasekhar, co-founder, chairman and chief executive officer of Jamcracker. "By integrating ASPs and providing tools through a single, secure platform, Jamcracker’s solution cuts through these complexities and enables customers to select, manage and easily pay for the services that work best for them. We turned to Accenture to tap into their deep industry knowledge and global client relationships so we can more easily extend this powerful solution to companies of all sizes around the world."
Industry analysts estimate that by 2005, the ASP market in the U.S. will top more than $23 billion, and that more than 80 percent of all software applications will be outsourced within 10 years.
"As companies worldwide look to leverage the Internet to improve processes and build value, the netsourcing model is emerging as an area of massive opportunity for our Fortune 500 and Global 1000 clients, as well as for Accenture," said James Hall, Accenture’s global managing partner for technology business solutions. "Jamcracker’s solutions take the ASP model the next step by giving customers simplified, cost- effective ways to use all of the online services they need to run their businesses. This alliance is an important element in Accenture’s plan to build a network of ventures, alliances and capabilities which will allow us to deliver complete and cost-effective netsourced solutions."
Serving as the single point of accountability in this multi-vendor environment, Jamcracker currently offers more than 20 services through Jamcracker Central. These services are designed to:
Increase efficiency in specific departments such as human resources and finance.
- Promote overall business efficiency across the entire enterprise with solutions including Internet- based e-mail, Web conferencing, online backup and remote access.
Simplify IT management through consolidated billing, monitoring and support.
"Enterprises increasingly recognize the need to focus more attention on their core businesses and less on infrastructure, and the Jamcracker solution enables companies to do just that," said John Kunzweiler, general partner, Accenture Technology Ventures. "Jamcracker is a leader in the emerging netsourcing arena, and we believe it is the strongest partner to provide Accenture clients with aggregated ASP services. As this market expands, Jamcracker’s forward-thinking management team and powerful solutions show great potential for markets around the world."
About Accenture Technology Ventures
Accenture Technology Ventures, the venture capital unit of Accenture, works with entrepreneurs to build companies that transform industries and generate superior economic returns. The unit provides a unique venture capital option that can help start-ups accelerate growth and market penetration. Based in Palo Alto, California, Accenture Technology Ventures expects to invest up to $1.5 billion globally over the next five years.
About Jamcracker, Inc.
Jamcracker™, Inc., the complete web-based workspace for IT and business applications, services and support, leverages the power of the Net to help medium-sized companies use technology to its full potential. Jamcracker aggregates and integrates best-of-breed web- based applications and services from a variety of providers into a single, secure and scalable platform, giving customers the flexibility to select the services that work best for them. Jamcracker monitors, manages and supports service level agreements for multiple vendors, giving customers a single point of accountability for web-based IT services on a local, regional, national and global basis. These services are available around the clock, through a single sign-on, secure service delivery workspace. Jamcracker, founded in 1999, is based in Sunnyvale, Calif.
Jamcracker is a trademark of Jamcracker, Inc., in the United States. All trademarks mentioned in this document are the property of their respective owners.