CBS' "Survivor" TV saga may be over, but for ASPs, the battle for survival may be just beginning.
Forsaking all the comforts of 21st century living, America's favorite TV castaways ate rats and suffered innumerable bug bites vying for a million-dollar jackpot.
The stakes are much higher for ASPs. Gartner Dataquest estimates the ASP market will reach more than $25 billion by 2004. But in the same breath, the folks at Dataquest issued another prediction, this one much more grim: Only 40 percent of today's ASPs are expected to survive through the end of next year.
Recent research from IDC shows that, despite getting as much press as Rich, Rudy and the rest of the Survivor bunch, ASPs haven't made much impact on the people who really count: top-level company executives.
In a survey of 400 decision-making chief-level executives, only about 6 percent claimed to have a detailed knowledge of ASPs and their offerings. Roughly half said they have no familiarity at all with the term "ASP." About 26 percent said they have some knowledge of ASPs and their offerings, while just more than 18 percent said they had just heard the term.
But just because executives don't know about ASPs today doesn't mean they won't be quickly educated tomorrow.
The same IDC research showed that 37 percent of the respondents said they would pay more for application services provided by an ASP over in-house services if the ASP's security, reliability and performance were better than those available in-house.
ASP Pulse is a daily news source for providers of hosted services. If you have any news to share, or just want to give us your take on the ASP market, contact me at (781) 839-1237 or send an e-mail to jhagendo@cmp.com.
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