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ASP Industry Rates Well on IBSi Survey

The Internet Business Services Initiative (IBSi), an industry association promoting the development and use of web-native business solutions, Thursday (Jan 4) announced the results of its first member survey defining the market and infrastructure characteristics of companies that provide software as a service. The survey profiles a young but stable industry with a high level of integration among services and several common features built-in to protect users.

According to the survey:
-- Web-native applications have carved out a solid foundation with IBSi member companies supporting an average of 27,677 users per site.
-- While small and medium-size customers account for almost two-thirds of IBSi members' business today, a significant 20 percent of the market is with larger companies that have over 250 employees.
-- IBSi members expect the high-end of the market to grow rapidly over the next two years. Customers with over 500 employees or more are expected to account for a quarter of the market by 2002.
-- There are several features designed to protect users that are common to IBSi members' services. All the surveyed companies that store user data as part of their service allow customers to export this information. These services also provide at least three or more layers of security.
-- All the IBSi members surveyed currently integrate with at least one other service or company.
-- Like packaged software, Internet Business Services need to be marketed aggressively and through interactive partnerships. Over half of the IBSi members work with third-party system integrators, Value-Added Resellers (VARs) or service aggregators and this is expected to increase significantly over the next two years.

The confidential survey, the first of its kind, was undertaken by the Initiative to gather information about the IBS market and to define the characteristics of its member companies, according to Duncan Van Dusen, IBSi president. A 16-point summary of the findings is available to the general public at the IBSi website. IBSi members and qualified media can obtain the complete report.

Internet Business Services develop, host and support web-native, business-to-business applications that are delivered over the Internet. The services are based on a one-to-many architecture and both the application and the customer's data can be accessed through a standard Web browser.

The Internet Business Services Initiative (IBSi) was founded to facilitate the growth, availability and adoption of Internet Business Services that deliver business-to-business applications over the web. Headquartered in San Francisco, the non-profit industry association aims to educate the marketplace and make it easier for customers to access, evaluate, use and benefit from these services.