ASP market: not all gloom and doom

Despite a lack of enthusiasm from small to medium sized businesses in taking up the ASP model in Australia, recent research has revealed it's not all gloom and doom.

In fact, there is an about face occurring amongst SMEs, with the ASP market looking a bit brighter for 2001.

The ASP market has experienced little enthusiasm from small to medium sized business (SMEs) in Australia according to Unisys Director of ASP Services Paul Gleeson, with only 32 percent of respondents surveyed in July this year comfortable with the notion of an ASP model.

However, a shift in interest has occurred amongst SMEs, with 55 percent surveyed in October currently using or considering subscribing to an ASP in the next 12-18 months.

Although the ASP market is looking up, "it's certainly not there yet, it is still immature and has a long way to go."

However, Gleeson predicts 2001 will be a very interesting year in relationship to the market.

The turnaround in SME confidence has come as the market moves into the mainstream with more credible vendors such as Microsoft entering the market.

Microsoft launched its ASP strategy last week, revealing it will be working with industry partners such as Peakhour, Telstra and Unisys to apply its ASP software package.

"With the credible vendors there is no longer boutique solutions, which will have more mass market appeal," Gleeson said.

However, for the ASP industry to keep the interest of local SMEs, Gleeson believes there needs to be more refinement of the model and leadership from providers of ASPs.

"The industry as a whole needs to step up to the market, rather than frantically trying to get customers on board. They need to refine what they're offering and provide leadership," Gleeson said.

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