IDC says ASP market set to double

In 2001 a new generation of application service providers (ASPs) will emerge with more companies designing software specifically for this business model, according to IDC.

Releasing its top 10 predictions for the ASP industry, the industry analyst said the ASP market will double this year and the focus will be on enhancing offerings with services.

IDC's senior ASP analyst, Amy Mizoras said customers will look for more than just access to, and functionality of, applications.

"ASPs will find ways to expand their services either around the delivery of the application or through add-on features such as enhanced security components; ASPs who survive the bumpy ride in 2001 will be presented with huge opportunities," she said.

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