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IDC to Study ROI of ASPs

IDC -- the company that coined the phrase ASP -- has announced the launch of a major research initiative to investigate the common belief that purchasing application services through an ASP can return a high yield as a technology investment.

The study, The Financial Impact of ASPs, will provide sponsors the ability to differentiate themselves in the market by demonstrating to clients an intricate understanding of steps that can be taken to maximize return on investment (ROI) for ASP implementations.

"While the ASP market is forecast to continue strong growth over the next five years, two burning questions are starting to raise concern from prospective end-user customers," said Stephen Graham, vice president of IDC's Global Software Partnering and Alliances research. "Is this a financially sound investment, and how do I maximize my return on investment?"

IDC will employ a case study technique to collect information and build several financial models focusing on an ROI measure. In addition to these models, qualitative background information will be collected to help the interviewers understand the factors contributing to success in each installation. These experiences will be summarized to reveal the site characteristics that distinguish companies' varying levels of return on ASP implementations.

"Sponsors of this ground-breaking study will benefit on many levels," said Meredith Whalen, director of ASP and Internet Services research at IDC. "First, sponsors will have the ability to present a series of actual ROI scenarios to customers. In addition, the study will provide sponsors with an advanced understanding of factors that contribute to financial success -- which can be translated into the value provided to clients. Finally, the study will reveal the financial impact of ASP implementations at an industry level, which in turn, is expected to grow the market as a whole."

Interested ASP sponsors should contact Christopher Bednarz.