ASPs fail to get the message across

The UK software industry is missing a major route to market because of ignorance about the application service provider (ASP) market, according to a recent survey.

NEWS ASP iProvide commissioned the research in an effort to measure awareness about the emerging ASP model of software supply - based on renting hosted applications instead of buying them outright. Only 23 per cent of the 120 independent software vendors (ISVs) questioned claimed they had any real understanding of the concept while not one could actually name an ASP operating in their field. The study also found that among the 25 per cent of respondents who claimed to have an existing relationship with an ASP, only 56 could recall the name of that company. Steve Andrews, research manager at Opus Research - who carried out the study - said ISVs must get to grips with the ASP model. "They simply can't afford to ignore it because it will be more cost effective than selling via reseller - their customers will demand that," he said. Tim Pickard, vice president of the ASP Consortium, agreed that confusion among software vendors is rife. "But," he argued, "it's more about market awareness than having the will to get involved. ISVs are working hard to enable their applications for the ASP but the ignorance comes when they have to get those products to market." The ASP Consortium is currently trying to raise awareness through campaigns and seminars.

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