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Key3Media Study Finds ASP Market Booming

Technology tradeshow producer Key3Media Group, Inc. released results of a study today on application service provider (ASP) industry trends, indicating that the ASP marketplace is currently flourishing.

The survey was conducted in conjunction with Survey.com and Omni Consulting Group LLP, and involved more than 1,500 participants. Omni Consulting is a research firm for the technology industry.

"This research is the defining compendium of information pertaining to the service provider community," said Frank Bernhard, managing principal, for Omni Consulting Group. "By touching upon seven key drivers, this study reflects the industry momentum as it approaches a point of critical mass adoption."

According to Key3Media, the report reveals evidence that a fundamental change is already underway in the next phase of the service provider marketplace.

The study surveyed both end-users and industry professionals on seven key elements within the ASP marketplace: competition, culture, political influence, technology, human capital, and economic behavior.

"More than 29 percent of the survey population indicated that they have already adopted or utilized Web-based applications, indicating that xSP models are gaining momentum," said the Key3Media report.

"Although four out of five respondents reported receiving the value promised in service level agreements, only 32 percent of respondents noted that their ASP relationship is covered by a service level agreement, illustrating that quality of service matters, as reflected by the large constituency of users stressing quality."

The report went on to add that a majority of users believe that the current ISP model is doomed as access to applications and content becomes a priority, and that ISPs must change their fundamental business structure to compete effectively in the application services area.

Key3Media plans to utilize the results of the survey to enhance content for future ASP Summit events. ASP Summits are developed in conjunction with the ASP Industry Consortium.

Key3Media is headquartered in Los Angeles, with offices nationwide.