Listed financial software distributor Solace is gunning for an ASP contract with RAMS Home Loans which could give the supplier the capability to be a major player in the ASP industry.
RAMS' current banking system runs on GLOBUS, a product distributed and customised by Solace, and the financial institution is looking to outsource its banking applications to Solace over the next decade. The two companies have assessed the possibility of a 10-year contract worth $10-15 million per year whereby Solace would service RAMS' software needs via an ASP arrangement.
Robert Edge, managing director of Solace, said it would take four to five weeks to confirm both companies' approval of the deal, with a formal announcement expected by early April. The possibility of such a large-scale arrangement has Edge considering the potential to offer similar services to a variety of new customers.
"This is a first step toward a solid ASP arrangement for Solace, which should give us the revenues and the infrastructure to service the rest of the market," he said.
Photograph: Solace MD Robert Edge.