Local update of ASP lagging

Local update of ASP lagging

New figures commissioned by the ASP Industry Consortium reveal that the adoption of models is yet to take off in Australia.

Nonetheless, the visiting chairman of the consortium predicts that application service provision will blossom while other areas of the IT industry will continue to decline in the current uncertain economic climate.

Visiting Australia to discuss such issues with members of the local branch of the ASP Industry Consortium, chairwoman Paula Hunter said IDC predicts the ASP market will achieve a compound annual growth rate of 75 per cent in the next four to five years.

"[ASP] will become a pervasive choice," she said. "Any company currently offering software in the traditional fashion will be able to provide you with the choice of offering it as a service within a couple of years."

The consortium has commissioned research from UK group PMP Research on behalf of its members, which breaks down the model on a per-market basis. Australian businesses were shown to have high awareness of the model (78 per cent), but current usage sits at 6 per cent, as opposed to a global average of 8 per cent.

Hunter still believes education is the key to wider adoption, pointing out that 54 per cent of Australians surveyed said they do not plan to use ASP services as they see no business case or benefits to the model.

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