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Scala demonstrates continued potential of ASP model with Atos Origin

Johannesburg, 31 Oct 2003

Drawing the potential of the Application Server Provider (ASP) model back into the limelight some time after the hype of the turn of the century, Scala Business Solutions (SBS) has announced a R2.1-million license order with Atos Origin to offer the iScala Collaborative ERP system on the model.

A global IT and application service provider headquartered in Paris, France, Atos Origin will implement the iScala system in ten countries across Central and Eastern Europe for its customer based on the ASP model. The deal was signed by Scala Austria.

"We chose to partner with Scala on this deal because of their strong presence and experience in Central and Eastern Europe," said Fritz Strobl from Atos Origin.

"Coupling our low-cost hosting solution with iScala's localisations for all the countries where our customer does business, will provide our customer with benefits like reductions in administrative costs, faster access to accurate data through iScala's connectivity solutions and improved financial reporting. We are confident that iScala will support our customer's business now and as it grows."

"The advantage of a hosted solution through an ASP includes fixed project prices for easy budgeting and planning, and easy-to-manage IT infrastructures with no need for large IT departments or investment in skilled staff or expensive hardware," said Andreas Ransmayr, Managing Director for Scala Austria.

"The ASP model takes away a lot of the initial outlay and risks of implementing ERP, as well as significantly reducing the time it takes to become operational. In addition, having a hosted ERP solution can also make upgrades cheaper and faster. The combination of Atos's experience with ERP hosting and the iScala Collaborative ERP system offers companies proven global ERP functionality for a fraction of the cost compared to other vendors."

Shamik Sinha, CEO of Scala Africa notes that the flexibility of the iScala platform makes it an ideal ERP solution on the ASP model. "By outsourcing business processes to experts like Atos Origin, customers can concentrate on their core business activities and increase their performance," he notes.

Sinha notes that the ASP model is highly attractive, especially for smaller organisations seeking to enjoy the benefits of a full collaborative ERP system without a large capital outlay. He says the ASP model can be offered in South Africa, and expects interest in the hosted application model to increase as bandwidth constraints are addressed.

"We are encouraged by the success of ventures such as the Atos Origin deal, and believe that as the SNO (second network operator) process draws to a close, the benefits of the model will increasingly be realized in the local marketsham."

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Atos Origin

Atos Origin is an international information technology services provider. Its business is turning client vision into results through the application of consulting, systems integration and managed operations, including outsourcing and on-line services. In August 2002, Atos Origin acquired KPMG Consulting in the UK and The Netherlands, trading as Atos KPMG Consulting. The company generates annual revenues of EUR 3 billion and employs 28,000 staff in 30 countries. The Group's client list includes major companies such as ABN AMRO, Akzo-Nobel, Alstom, BNP Paribas, BP, Euronext, Fiat, ICI, ING, KPN, Lucent, Philips, Renault, Royal Bank of Scotland, Saudi Aramco, Shell, UBS Warburg, Unilever, Vivendi Universal, Vodafone and Wolters Kluwer. For more information, visit www.atosorigin.com.

Scala Business Solutions

Scala Business Solutions offers a collaborative ERP system to make business simple. Whether companies do business in established or emerging markets, or both, or even in some of the world's most difficult-to-get-to places, Scala offers them the most complete, integrated ERP, CRM and SCM solution on a web services platform to help them increase their business efficiency and productivity, drive their sales and increase their profits.

Scala delivers software and services which support local currencies, accounting regulations and legal requirements in more than 30 languages. With over 25 years' experience working with international companies and their subsidiaries and divisions in all types of industries in more than 140 countries, Scala has the local know-how and expertise to deliver results for businesses anywhere in the world.

Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA). 2002 revenue was US$ 73.4 million (? 77.8 million).

Visit Scala's website at www.scala.net for press information including press releases, information for investors, and company and product information.

Scala Africa

Scala Business Solutions is represented in Africa and the Indian Ocean Islands by Scala Africa, which provides sales, consulting and implementation skills to a customer base of 70 companies in South Africa and a further 300 in the rest of Africa and the Indian Ocean Islands. Headquartered in Johannesburg and with offices in countries including Kenya, Uganda and Nigeria, Scala Africa (Pty) Ltd., is a truly pan-African concern that offers integrated, collaborative ERP solutions to businesses across the continent. Visit Scala's website at www.scala.co.za for press information including press releases, information and product information.

Editorial contacts

Donovan Jackson
The Copy Generation
(011) 675 3460
donovanj01@telkomsa.net