RealTime IT News

Aberdeen: Long Live ASP!

In a research report released today, IT analyst firm Aberdeen Group said that it believes ASP will prevail despite market conditions, calling the ASP value proposition "too significant to ignore."

"The ASP market is relatively young and still maturing. It is only natural that in this process business models will change and there will be continued experimentation," said Lew Hollerbach, Managing Director, Service Providers at Aberdeen. "Overall, however, the value proposition of the ASP model is too significant to ignore. Aberdeen forecasts that the ASP will continue to prevail despite any impending market realignment."

The report, ASP Market Snapshot: Turning the Corner, analyzes current market trends, drivers and adoption challenges, and examines market segments and their evolution. Some of the findings that Aberdeen's research produced include the following:

  • In light of the economic slowdown that has occurred in the high tech sector over the past 12 months, cost reduction has once again become one of the primary business benefits that the ASP offers to customers.
  • ASPs that are able to put together an effective partnership/alliance program combining the best practices from a variety of fields will ultimately dominate the market.

CRM, collaboration, and e-Commerce applications were the most frequently offered applications according to survey respondents, yet the individual revenues of these segments represent only a small percentage of the entire market in 2001.