Bermuda and the world on to the benefits of consolidating computer functions.

Businesses will no longer have to maintain a dedicated computer department and invest in costly information technology specialists, as Sbi Ltd. a division of Ignition, will make the entire service available for rent.

Jamie Thain, president of Sbi, said the company would be Bermuda's first applications service provider (ASP). The ASP will centralise the computer functions of various businesses in one location and rent programming.

Instead of buying a costly computer system, clients will only have to invest in monitors and small terminals. Gone will be the dedicated computer departments of many offices, as specific programming is rented to the clients.

The company has formed hosting partnerships with Rebus who will make available the reinsurance application, Genius, and MCS Ltd. who will provide the accounting software, Great Plains.

Popular applications like Word, Exel and Power Point as well as managed e-mail would be offered as a monthly rental.

The move will enable companies to take advantage of economies of scale by out sourcing their computer functions to the ASP.

"They can calculate absolute costs,'' said James Gould, of eVenture Centre, "which is very useful to companies.

"And with that fixed cost they will also get our guaranteed service,'' said Mr. Thain.

The service will cut out the need for companies to retain their own information technologists, a move which in light of the world wide shortage in the profession, should prove to be a significant cost saver.

"The analogy I like to give,'' said Mr. Gould, "is that the ASP will be like the garages of today. When automobiles first came onto the market everyone who had one, had their own chauffeur and their own mechanic, because people didn't know how to drive them or fix them,'' he continued.

"If people were doing that today the cost for a mechanic would be exorbitant.'' Leading the way of the future the partners pointed out that by out sourcing the computer function, many businesses would be able to better concentrate on their core functions.

"ACE and Exel want to concentrate on writing insurance. That is their business,'' said Mr. Thain. "but they each have had to maintain a complete computer and information technology department.'' And Mr. Thain declared that it would only take Sbi a week to have a company up and running.

"BIBA were impressed with the fact that they could now tell a company that it would only take them a week to be in operation in Bermuda,'' said Mr. Thain.

But the company has set its sights beyond the physical confines of Bermuda with plans in phase two of the project, to take on board companies outside the Island, and set up a second server room somewhere in Europe.

Phase three would see a move into the Pacific rim and establishment of a server in Singapore.

"Our servers will always be in an offshore jurisdiction,'' said Mr. Gould.