Opsware To Open Doors

After selling its managed hosting business to EDS, Loudcloud became an IT operations management software vendor and is developing a channel strategy, he said.

Now called Opsware, Loudcloud's software initially will be sold direct, but the channel will have a significant role as a sales and implementation arm, Andreessen said.

"Opsware is structurally like the early versions of Siebel or SAP, so the good news is that there are tremendous channel opportunities because a lot of customization is needed as it rolls out," said Andreessen. "The bad news is new software is pretty complex. The customers and the market need to be educated by the vendor in order to create enough demand, so initially we will have the primary sales and fulfillment role."

For example, Opsware will seek partnerships with systems integrators and boutique high-end VARs with network management expertise, Andreessen said. "It will be more SAP- and Siebel-type systems integrators, but also folks who feel comfortable implementing things like [Hewlett-Packard's OpenView or [Computer Associates International's Unicenter," he said.

Keng Lim, president and CEO of Escalate, which develops supply chain management software and offers it as a licensed product and a hosted service, said he predicts other companies will follow Loudcloud's lead. "More companies are going to diverge to either be a service provider only or software vendor only," he said. "With Loudcloud, their specialty really is in developing software. It's their background."