As Hosting Service Providers (HSPs) become Application Infrastructure Providers (AIPs), there is a real danger that they will be competing with their Application Service Provider clients, the report states.
As the HSPs change, ASPs will have new options for their data centres and will also have access to new service avenues, but the flip side of this is that AIPs and HSPs could end up competing with their ASP clients, according to IDC.
The IDC ASP Advisor report says that several HSPs have already become AIPs. As a result, they can now offer a one-stop-shop that will cover everything, including the environment where the ASP applications live, providing the impetus for HSPs to become ASPs.
IDC believes those that become an AIP will have to help the ASPs address their customers, who will have concerns. Already Genuity, Digex and Intel Online Services have announced that they are following the trail to becoming an AIP, a move which IDC believes will see these companies offer a more managed service.
Already HSPs are offering services which host ASP applications, but this has required a new approach to the hosting method. -The HSO market has become something of a commodity market. HSPs are looking for ways to add value, increase contract sizes and increase switching barriers for their ASP customers," said Amy Mizoras, a senior analyst for IDC's ASP program.
The managed services that an AIP will offer are to include;
- Pre-engineered and tested architecture designed specifically for hosting applications
- The ability to test upgrades and enhancements before customer roll-out
- System and network management capabilities
- Monitoring and reporting of network and application performance
Some companies, such as Cable and Wireless and PSINet, have already broadened their horizons to act as AIPs, ASPs and HSPs for different clients, both companies have support programs for external ASPs, but also have their own ASPs. This could lead to difficulties with the AIP becoming a competitor to an outside ASP, which IDC points out is an issue that will have to be dealt with from the initial stages.
The IDC report sums up that ASPs need to asses their strengths before making data centre decisions, with those that come from a strong software background better off by concentrating on outsourcing.
