Don't believe the hype

Don't believe the hype

There's been a lot of hype about ASPs this year, with vendors targeting them and ASPs touting the benefits of their model to end users.

Two obvious examples are Microsoft and Novell, which have announced programs for emerging ASPs in an attempt to sell them their solutions.

ASPs are sold on the convenience of what they offer, and the potential cost savings involved with outsourcing applications management over a network.

There are two schools of thought on who will come out on top in the ASP market, with analysts predicting a major fail-rate as telco companies, ISPs and ISVs reinvent themselves as ASPs without focusing on quality of content or service-level agreements.

One was summed up by Lotus' Angel Ioannou when ARN spoke with him in September. "The real winners in the ASP market will be those who have all the applications you could want," Ioannou predicts. "The ones that will thrive will be the one-stop shops." While Ioannou believes aggregators will dominate the market, other players see a focus on a particular vertical as the key to ASP survival. ASPs like Impaq and Tequinox have been pushing the message that a knowledge of the industry you serve is integral to customer confidence. What 2001 will come down to is whether customers decide to choose quality or quantity.

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