April 19, 2001, 12:52 PM — Jamcracker, which integrates hosted applications, and Loudcloud, an infrastructure service provider, have teamed to give enterprise customers easy access to hosted applications and managed Web-based IT services.
The joint marketing agreement, announced last week, should simplify outsourcing internal applications and day-to-day Internet functions, the companies say. With the partnership, the two companies can offer a broader range of Web-based IT services and products. But, while Jamcracker customers may be pointed to Loudcloud and vice versa, customers will receive a separate contract and service-level agreement from each company.
Loudcloud's Scott Dunlap, vice president of marketing at Sunnyvale, Calif., company, says the two service providers found they were targeting the same customers, with Loudcloud peddling its back-end infrastructure support and Jamcracker selling hosted applications.
Loudcloud manages IT infrastructure using its Opsware automation technology, which lets it grow Internet systems and charge customers on a pay-per-use basis. Jamcracker is a so-called application service provider (ASP) integrator, meaning it doesn't host applications but manages a number of ASPs and acts as the conduit to deliver multiple services.
Carrie Lewis, an analyst at The Yankee Group, says the alliance will help both companies. Loudcloud customers probably will be more likely to outsource applications to an ASP such as Jamcracker because they already are outsourcing infrastructure, while Jamcracker will send customers and ASPs Loudcloud's way.
Lewis anticipates seeing more partnerships at Loudcloud, which announced a marketing alliance with Accenture (formerly Andersen Consulting) last week, as the company looks to broaden its services.
Loudcloud, founded by former Netscape executive Marc Andreessen, recently reported fourth quarter revenue of $8.9 million, a 94% increase over the previous quarter. But fourth quarter losses were $58.8 million, and its stock has dropped more than 20% since its IPO last month.
Meanwhile, Jamcracker is continuing to focus on larger customers and plans to use resellers such as Loudcloud and partner Accenture to offer companies broader services.