The New Generation of ASPs Has Learned Much from the Experiences of Their Predecessors, IDC Says

Apr 04, 2001, 01:00 ET from IDC

    FRAMINGHAM, Mass., April 4 /PRNewswire/ -- The next generation of
 application service providers (ASPs) has emerged, and they are determined to
 improve upon the mistakes of the first-generation ASPs. According to IDC, this
 next generation has learned a great deal from watching the first generation,
 but will encounter its own unique hurdles.
     "First-generation ASPs that deliver applications around client/server
 third-party software struggle with issues related to scaling and integration,"
 said Jessica Goepfert, senior analyst with IDC's Application Service Providers
 research program. "Because the next-generation ASPs are designing their
 applications specifically for the ASP model, they will not grapple with these
 issues. Instead, they must contend with tremendous challenges in the areas of
 brand recognition, reputation, and quality of service."
     Next-generation ASPs have also learned a valuable lesson about
 infrastructure strategy from their predecessors. "A sophisticated
 infrastructure is key to delivering software as a service, but it is also very
 costly," Goepfert said. "Many early ASPs spent precious resources building
 their infrastructure and ended up with excess capacity and cash deplete.
 Learning from that experience, today's ASPs are forming partnerships to help
 with their infrastructure needs."
     The ASP market is characterized by media hype and misunderstanding. IDC
 believes that the next generation of ASPs could further muddy the waters if
 they try to disassociate themselves from the "ASP" acronym. Instead, they
 should focus on why they believe their methods are an improvement over their
 predecessors.
     IDC recently published A New Generation of ASPs Emerges: Software as a
 Service (IDC #B24207). This study analyzes the attributes of the newest ASPs
 and compares them with first-generation ASPs. To purchase this bulletin,
 contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.
 
     About IDC
     IDC delivers dependable, high-impact insights and advice on the future of
 ebusiness, the Internet, and technology to help organizations make sound
 business decisions.  IDC forecasts worldwide markets and trends and analyzes
 business strategies, technologies, and vendors, using a combination of
 rigorous primary research and in-depth competitive analysis. IDC provides
 global research with local content through more than 700 analysts in 43
 countries worldwide. IDC's customers comprise the world's leading IT
 suppliers, IT organizations, ebusiness companies, and the financial community.
 Additional information can be found at http://www.idc.com.
 
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
 

SOURCE IDC
    FRAMINGHAM, Mass., April 4 /PRNewswire/ -- The next generation of
 application service providers (ASPs) has emerged, and they are determined to
 improve upon the mistakes of the first-generation ASPs. According to IDC, this
 next generation has learned a great deal from watching the first generation,
 but will encounter its own unique hurdles.
     "First-generation ASPs that deliver applications around client/server
 third-party software struggle with issues related to scaling and integration,"
 said Jessica Goepfert, senior analyst with IDC's Application Service Providers
 research program. "Because the next-generation ASPs are designing their
 applications specifically for the ASP model, they will not grapple with these
 issues. Instead, they must contend with tremendous challenges in the areas of
 brand recognition, reputation, and quality of service."
     Next-generation ASPs have also learned a valuable lesson about
 infrastructure strategy from their predecessors. "A sophisticated
 infrastructure is key to delivering software as a service, but it is also very
 costly," Goepfert said. "Many early ASPs spent precious resources building
 their infrastructure and ended up with excess capacity and cash deplete.
 Learning from that experience, today's ASPs are forming partnerships to help
 with their infrastructure needs."
     The ASP market is characterized by media hype and misunderstanding. IDC
 believes that the next generation of ASPs could further muddy the waters if
 they try to disassociate themselves from the "ASP" acronym. Instead, they
 should focus on why they believe their methods are an improvement over their
 predecessors.
     IDC recently published A New Generation of ASPs Emerges: Software as a
 Service (IDC #B24207). This study analyzes the attributes of the newest ASPs
 and compares them with first-generation ASPs. To purchase this bulletin,
 contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.
 
     About IDC
     IDC delivers dependable, high-impact insights and advice on the future of
 ebusiness, the Internet, and technology to help organizations make sound
 business decisions.  IDC forecasts worldwide markets and trends and analyzes
 business strategies, technologies, and vendors, using a combination of
 rigorous primary research and in-depth competitive analysis. IDC provides
 global research with local content through more than 700 analysts in 43
 countries worldwide. IDC's customers comprise the world's leading IT
 suppliers, IT organizations, ebusiness companies, and the financial community.
 Additional information can be found at http://www.idc.com.
 
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
 SOURCE  IDC

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