ASPs urged to go vertical

While the application service provider (ASP) market failed to make good on its own hype, it appears as though vertical industries are, finally, beginning to show an increasing interest in the technology.

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By  Matthew Southwell Published  May 1, 2002

While the application service provider (ASP) market failed to make good on its own hype, it appears as though vertical industries are, finally, beginning to show an increasing interest in the technology.

According to IDC, services companies spent approximately $245 million on ASP services in 2001 and other verticals, such as healthcare, will witness accelerated investment in ASP in the next two years.

The analyst house suggests that one reason for this positive outlook is an increasing focus from ASP vendors. This, IDC continues, allows the ASP to increase the value they deliver to customers while making the most of limited budgets.

“Focusing on a vertical industry is beneficial to both the customer and the ASP,” says Jessica Goepfert, program manager for IDC’s ASP and Applications Management Services research.

“By honing in on a particular industry or set of complementary industries, ASPs can better tackle end-user concerns around integration and customisation. ASPs can leverage their knowledge of how businesses in a particular vertical market operate to pre-customise and configure their solutions, cutting down the time and expense of the implementations,” she adds.

Although the local ASP market is still a long way behind its more mature European or US cousins, the trend for focusing on specific verticals does appear to have reached the Middle East. Aspidex, for example has focused its offering at the banking community.

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