Corio to host SAP's R/3 suite

Application service provider Corio Inc. is set to announce a deal with SAP AG to host its R/3 application suite.

Corio, which will become an SAP certified partner, has the ability to host the entire suite of R/3 applications, although initially it will focus on offering manufacturing modules and a tool to build Web storefronts, according to a source who requested anonymity. The tool will allow the Web storefront to be integrated into hosted R/3 applications on the back end.

Corio already hosts ERP applications in human resources from PeopleSoft Inc.

The deal comes on the heels of Thursday's announcement by SAP of an as-yet-unnamed venture that will be the ASP arm of the German company.

Corio's deal is expected to be announced in a week or two, and the cost of the hosted service is still being determined. A spokesperson for SAP did not immediately return calls for comment.

Corio gained attention recently in the ASP market with its $10 million investment from Microsoft Corp. As part of that deal, Microsoft also agreed to co-develop applications that will run on the Windows 2000 platform, hosted by Corio. They include Office 2000 and customer relationship management applications from Siebel Systems Inc. Corio partners with Concentric Network Corp. to provide its network and data center functions.

SAP's new venture, which will have 50 employees when it begins operation April 1, will be aimed at small and medium-size businesses. It will support the company's new mySAP.com ASP partner program.

Corio, of Redwood City, Calif., can be reached at www.corio.com.