Santa Clara, Calif., May 31, 2007 -- OpSource™, the SaaS delivery experts, today announced the opening of its European headquarters, located at Albany House, Market Street, Maidenhead, Berks SL6 8BE, U.K. OpSource is expanding operations into Europe to meet rising demand from local software-as-a-service (SaaS) and Web 2.0 companies for Web application delivery services. In addition, OpSource will be providing European application delivery services for its U.S.-based customers from its U.K. operations center.

Recent IDC studies on the ERP and CRM markets in western Europe forecast high double-digit growth rates for on-demand applications. "Adoption of the on-demand model in Europe has been a few years behind the U.S. despite high broadband penetration in Europe," said Bo Lykkegaard, program manager, European enterprise applications, IDC. "The current gap between on-demand adoption in the U.S. and western Europe is expected to narrow during the 2007-2011 period implying very high European growth rates. In the CRM market, IDC expects on-demand CRM applications to make up almost half of the net market growth of the entire CRM market in Europe during the next five years."

Treb Ryan, OpSource CEO, added, "In response to the groundswell of European software companies now looking to adopt the SaaS model, and U.S.-based companies looking to expand their operations overseas, OpSource is taking the lead in helping these companies overcome structural and financial barriers to entry, while creating an environment ripe for accelerating SaaS growth in the European SaaS community. To accomplish our goals, we plan to work closely with our partners in the on-demand world, Microsoft, salesforce.com and Savvis."

OpSource is focused exclusively on delivering applications over the Web for business-to-business and business-to-consumer companies. OpSource customers provide the application or service and OpSource utilizes OpSource On-Demand, the leading platform for Web application delivery, to deliver it under the customer's name and brand. Everything necessary for Web delivery is provided, eliminating the customer's need to invest in delivery infrastructure, systems, application management, and non-strategic services such as analytics and billing. This saves valuable resources and accelerates time-to-market. OpSource further reduces risk and cost for its customers through the use of a "shared success" business model. With a modest initial expense, OpSource Success-Based Pricing insures that increasing customer revenues always precede any increases in delivery cost.

Scott Mills, senior director, European operations at OpSource, said: "The vast majority of software companies struggle to successfully deliver SaaS applications, because of the high costs, daunting infrastructure and management challenges inherent in delivering on-demand software and services. There are three basic issues: One, the Web delivery model differs fundamentally from traditional premise-based application delivery. Two, the demand for SaaS and competitive pressures throughout Europe have intensified, and three, 24x7 service delivery is not in the genetic makeup of software companies. That's why our customers select OpSource and OpSource On-Demand – we have the experience, technology and proven Web application delivery track record."