AutoXchange, the first automotive e-business integrated supply chain, will help Ford and its suppliers minimize expenses through streamlined sourcing of vehicle components. Eventually, the company will automate its entire purchase process. AutoXchange will also extend Ford's core business into an e-business enterprise, allowing consumers access to the supply chain.

Through the agreement, Oracle will provide the software, implementation and support, as well as host and manage AutoXchange, making Oracle a major ASP. Presumably, the integration will be done through its Oracle Consulting Services (VARBusiness 500 rank: 10).

Some wonder how carefully the joint venture was thought out, however.

"Oracle doesn't have a fleshed-out strategy," says a source. "It's so new, it doesn't know what the implications are for resellers. I don't think it even knows what the opportunities are."

But, John Repko, vice president of operations for Oracle Business OnLine (BOL), says, "The potential for partnering with Oracle is much greater than the potential for conflict."

E-business consultants and systems integrators seem to take a dim view of such incentives and are convinced they can be successful ASPs on their own.

For example, Larry Kurtz is looking to transition his businesses into the ASP market next quarter by providing Web hosting services. "If that's the business Oracle is going after, it's now my competitor," says Kurtz, e-business manager at Aspen Consulting Inc., an e-business consultant based in Rolling Meadows, Ill. "But, there's a lot of business out there. I'd rather go after the small to midsize companies. The more you can help them grow their companies, the more successful we both will be."

Some ASP revenue opportunities Kurtz is considering through Web hosting are video on demand, linking credit card transactions to accounting, and warehouse applications.

Barbara Reilly agrees. The research director of e-business transformation at Gartner Group Inc., Cambridge, Mass., isn't convinced Oracle's one-size-fits-all strategy will work, for small businesses especially. She says they are mostly concerned with Oracle's ability to provide a customized and scalable software solution for each company.