Horizon Technology has introduced i-fusion, an application service provider (ASP) for the European market, using software provided by SAP.

The new service will start operations in Ireland and Britain and will specifically target high growth companies, especially in the dot.com and technology sectors.

Customers of i-fusion will pay a flat, monthly rental charge to the company to host and manage software on a remote server. Customers will gain a portfolio of end-to-end business solutions via the Internet.

Horizon says the benefits to customers include reduced initial costs, faster software implementation time, and fewer specialist information technology staff required to maintain software and elimination of the need for expensive, external IT consultancy.

"Prior to the launch of i-fusion, it would have put a lot of strain on company's resources to implement and maintain a best-in-class solution like SAP," Horizon said. "Now with the i-fusion centrally-managed facility, it will be possible for companies to rent an ASP station for as little as £200 per month."

Horizon plans to locate the service in two large centres, in Dublin and London. At present, there are 10 people working on the i-fusion service but the company expects this to rise to more than 50 by year-end.

Mr Robert Hussey, technology analyst at NCB Stockbrokers, described the news as "very positive news for the stock" which should boost the company's valuation.

He said the European high-end ASP market was forecast to grow from $9.1 million last year (€9.5 million) to $390.1 million by 2003, a compound annual growth rate of 156 per cent.

"From a financial perspective, we estimate that the ASP business will depress earnings in the medium term but will strongly position the company to capitalise on the significant growth potential of this market and ultimately create sustainable shareholder value," NCB, which acts as broker to Horizon, said.