IBM and Wuxi Software Industry Development Co., Ltd. (Wuxi iPark) today announced the launch of a new, smarter-IT infrastructure service offering to help Independent Software Vendors (ISVs) in China dramatically reduce the cost and time required to develop business software applications. The new cloud computing service offering is also designed to help ISVs reach new markets by providing them with the ability to sell their software solutions as Web-hosted services to customers around the world.

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The collaboration is designed to accelerate the growth of the software application business in Wuxi iPark, supporting the Chinese government's mission of making the Wuxi District a major software development center. By 2012, China expects to see the emergence of a handful of ISVs, each generating revenue of RMB 100 million annually, and hundreds of mid-sized to small ISVs in the Wuxi District, collectively generating annual revenue of RMB 60 billion, including software exports of RMB 7.7 billion (US $ 1.1 billion).

The Web-based services, offered through the new Innovation Incubation Platform, is part of Wuxi iPark's RMB 120 million IT infrastructure investment. Built on a software service research project from IBM, code-named "Pangoo," it includes software development, software engineering, software service technical incubation and market monitoring, as well as operational and hosting services. Developed by IBM Research - China, it integrates technologies and concepts from cloud computing, software-as-a-service (SaaS) and software-engineering-as-a-service.

China is emerging as one of the world's major markets of software development and outsourcing services. According to China's Ministry of Industry and Information Technology, the software industry generated revenue of RMB 757.29 billion in 2008, up 8.3 percent from the previous year, and software exports were valued at US $3.38 billion.

However, the industry is facing several challenges, such as a lack of advanced software development platforms, as well as a large technical skill shortage. To survive and be more competitive in a rapidly evolving environment, software companies or ISVs recognize the need to have agile software development processes to shorten the lifecycle from product development to market.

As service subscribers, ISVs located in Wuxi iPark can leverage the Innovation Incubation Platform to conduct project incubation, development and testing. ISVs can remotely access a vast resource of computing at any time, just as they use utilities and other shared services. Service fees will be imposed according to usage. This new business model allows the ISVs to reduce their IT investment and related maintenance and free up their capital and resources for other business activities such as sales and marketing. This ability helps China's ISVs, especially start-ups, combat challenging economic conditions..

Thanks to the open-standards-based technology architecture and an innovative development methodology, the Innovation Incubation Platform allows software development to be performed by team members located in different cities in China in a shared IT environment. As a result, ISVs can increase their response to market demands and requirements.

The new service also supports ISVs' transformation into business application service providers. As one of the early subscribers to the Innovation Incubation Platform, Delversoft Company Ltd. completed development of the new version of its Baking Management Service (BMS) Solution in six weeks. The new software product is delivered as a service, hosted for customers in the Innovation Incubation Platform. As Delversoft's flagship product, the BMS Solution has been well received in the industry China-wide. With the software as a service version of the BMS Solution, Delversoft is able to reach out to new customers located across the country and provide the benefits of acquiring the technology as a service without the up-front costs of new software and hardware and installation, plus on-going IT service and maintenance.

By providing advanced IT resources and a value-added service, Wuxi iPark operates under a new business model. Unlike other software parks or science parks in China, Wuxi iPark can now provide greater services beyond the typical office space, general management support, and basic facilities, such as water and electricity.

Said Zhou Qian, Secretary, Wuxi New District, Committee of the Community Party of China, "We are pleased that Wuxi iPark is able to leapfrog to the latest technology model around cloud computing and SaaS. This allows us to set a solid foundation for us to achieve the goal with Wuxi iPark as a major source for software development outsourcing."

"We are committed to supporting the government in growing ISVs in China," said Dr Thomas Li, Director, IBM Research - China and CTO, IBM Greater China Region. "With IBM's advanced technology and business solutions based on industry insights, we are able to provide consultancy, incubation and training to help fuel a growing technology ecosystem throughout the country. Through the joint efforts with the government, we are able to enhance provide substantial support to ISVs in China, assisting them to explore new markets."

IBM Research - China has been working directly with clients and ISVs under the "In-Market Research" initiative to create replicable, cloud-delivered, industry-specific services in the areas of ERP, CRM and supply chain management. For example, IBM and Beijing eFuture Information Technology Inc. have launched a SaaS Solution for the retail distribution industry in China. The solution has been implemented at select Beijing Wangfujing Department Store Group ("Wangfujing Group") stores in Beijing, one of the largest retail groups in China, helping thousands of Wangfujing Group's suppliers to exchange business information, arrange payments online and access purchase orders and conduct other business activities. When the system is fully operational throughout the Group's stores in 17 cities across China by the end of 2009, the Group will be able to share the supply chain information real time with 20,000 suppliers.

About Wuxi iPark

For more information, please visit: http://www.ipark.net.cn/e_ipark_en/0/0.chtml

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SOURCE: IBM