Large corporates keen on ASP model: IDC

Despite concerns larger companies will be reluctant to adopt the application service provider (ASP) model, their role in the market is likely to be as prominent as that of small and medium enterprises, according to research from IDC.

Merv Langby, senior analyst at IDC, said a recent study of Australian organisations had found "there is not much difference between small and medium enterprises (SMEs) and large companies in terms of their intentions to adopt an ASP model".

But according to Rolf Jester, research director for Gartner Group's Dataquest, the trend of ASP model adoption is likely to begin with start-ups and SMEs, then move into large organisations.

The "entrepreneurial" parts of large enterprises, especially divisions likely to be spun off in the future, would drive acceptance of the ASP model across the wider business, Jester added.

Langby and Jester also agreed with fellow speakers at a recent industry roundtable hosted by local ASP, Alta Internet Business Centres, that during periods of technology transition, large businesses would consider adopting the model.

Langby said IDC's recent survey showed Australian users were concerned about three main issues in relation to ASPs: reliability of service; the provider's "business knowledge" of the applications it is hosting, and the predictability of costs.

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