February ASPnews Top 20

This month sees three changes to our Top 20 lists, making February one of the more tumultuous months so far in the history of the ASPnews Top 20. Shifts in the balance of power among infrastructure providers have led to the departure of two software vendors from our infrastructure list, while there is one change to the Top 20 ASPs list.

With two Chapter 11 filings taking place among our Top 20 ASPs
last month, a change for February is inevitable.

Last month, we warned that we would be re-evaluating USinternetworking based on its recent Chapter 11 filing. After further review, USi has retained its place on the list, despite the negative impact of a
bankruptcy that wipes out the value of shareholders’ investments,

To USi’s credit, it has already filed its reorganization plan with the court, signaling its intent
to move rapidly through the Chapter 11 process and emerge on a sound
financial and operational footing. In the meantime, it continues to maintain
services for its customers and to bring forward new service offerings. USi
remains among the world’s largest and best-known ASPs and it is moving
purposefully through its current difficulties. While we will continue to monitor
its progress, we still rank the company as a Top
20 ASP.

FSPs and ASPs Don’t Mix
Agilera’s decision to push Applicast, the Menlo Park, Calif.-based SAP and Siebel Systems ASP it acquired a year ago, into a belated Chapter 11 filing last week, has
completed a process that was already visible last summer. The filing may not have grabbed the headlines of USi’s bankruptcy, but it has significant implications to the business model of Agilera (see Applicast Files for Bankruptcy).

Agilera has always
pursued a “full-service provider” model, meaning that
it offers a mixture of systems integration, application management and
outsourcing. Its pure ASP offerings have been a dwindling proportion within
this mix. The closure of the Applicast unit confirms that the ASP model is
no longer core to its business. The decision appears to be a prudent business move for the company, but it does necessitate Agilera’s removal from the Top 20 ASP list.

Replacing Agilera is Salesnet. The company has
been
making rapid progress with its hosted sales automation solution, and now
joins those
other two SFA giants, Salesforce.com and UpShot, in the higher echelons of
the ASP
firmament. (See Salesnet Soaring in SFA.)
Salesnet’s success is a tribute not only to the well-judged feature set
of its offering,
but also to the excellent fit between the online delivery model and sales
automation applications.

Infrastructure Trends
Two data center giants join the infrastructure Top 20 this month. First is
Cable & Wireless, which has just closed its acquisition of Exodus. Despite
its data centers being home to many ASPs, Exodus as an independent entity
was never a candidate for inclusion in the list because it showed no real
interest either in supporting ASPs or in providing a robust infrastructure
for online applications. Cable & Wireless is a complete contrast. (See Cable & Wireless on Exodus Strategy.)

Cable & Wireless
believes in the ASP model, and it is already promoting Web services-ready
infrastructure through its Digital Island subsidiary. With that kind of
commitment behind the combination of its existing global Internet backbone
and Exodus’ data center assets, Cable & Wireless has become one of the
industry’s most influential infrastructure players.

Also joining the infrastructure provider list is outsourcing giant EDS, a company that has made several previous attempts
to become a key player in the ASP industry. Its admission to the Top 20 list
this month confirms that it has finally achieved its goal. The January
announcements of partnerships with ASPs Captura and Mi8 show that EDS has
begun to deliver what ASPs need from its huge global network of data
centers. EDS is learning how to partner with ASPs rather than selling its
own competing services.

Cable & Wireless and EDS replace software companies Lawson and Onyx in the listing. Although both vendors continue to support ASP partners,
their commitment no longer stands significantly above that of many of
their peers in the software industry. The bar for inclusion in the Top 20
has moved up, and few application vendors now have the resources to match
the influence of large infrastructure players and platform vendors in the
ASP and Web services landscape.

Top 20 ASPs

This is the list of companies that, in the view of ASPnews, are the world’s 20 leading ASPs. For inclusion, companies must meet the following criteria:

• Have ASP and/or Web services as their core business
• Have a substantial and active customer base
• Be able to demonstrate proven revenue streams
• Be innovators within the ASP and/or Web services models
• Be recognized as a leader by others within the industry

Top 20 ASP Infrastructure Providers

These are the 20 companies that, in the view of ASPnews, are the most influential providers of software or infrastructure for the ASP and Web services industry. For inclusion, companies must meet the following criteria:

• Have a substantial and active customer base of ASPs and/or Web service providers
• Be active in their support and promotion of the ASP and/or Web services model
• Be innovators within the ASP and/or Web services models
• Be recognized as a leader by others within the industry