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ASPs, ISPs,
BSPs...xSPs: The Information Utility is Upon Us and
There is No Turning Back |
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| Nov 2001 |
Doc #VWP000043 |
Viewpoint |
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| by |
Clare
Gillan
Group
Vice President, Applications and Information
Access
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The
emergence of ASPs in the late 90's became a catalyst,
expanding interest in the xSP model across the entire IT
industry. The xSP model is "utility-like" in that it delivers
service over a network from an externally managed facility in
a one-to-many business model, and is service-fee based. The
predominant focus of xSPs has been on communications and
infrastructure services. ASPs promised to extend xSP-based
services into new territory by more directly addressing
business and consumer interests such as financial management
and entertainment. With the backing of the trillion dollar
communications industry, dependent upon increasing network
traffic, it seemed to many that spending on ASP services would
explode.
ASPs recognized close to $1 billion in 2000,
slightly ahead of what IDC had forecasted but far below the
expectations of many ASPs and investors. Early ASP optimists
overlooked the fact that first generation ASPs were not only
trailblazing in complex territory, but many requisite
components, such as properly architected applications and
usage-based monitoring and billing capabilities, were not in
place.
Why did the entire IT industry become laser focused
on one of the smallest segments of the xSP market? Because,
despite the challenges, ASPs are onto a business model that
makes sense. The availability of bandwidth, xSP-ready
applications, and the requisite infrastructure support is
increasing. Demand for shared computing models enabling
collaborative communities is growing. Further, in many cases,
the xSP-based model is more logical given the capital
expenditure and complexity of maintenance associated with
information technology today.
Network, infrastructure, and
now applications delivered as service are just the beginning.
Development environment service providers (DESPs), such as
Developonline, are emerging to enable independent developers
to access sophisticated development environments without the
need for large capital expenditures. Business service
providers, such as VirtualGrowth and Non-Stop Solutions,
bundling ongoing access to business experts with xSP-based
support for business processes, are also beginning to emerge.
Considering the bigger xSP picture is essential given the
extensive capital required and time it takes to build revenue
based on streamed service fees. Despite the challenges
emerging xSPs continue to face, information utilities will
continue to emerge and there is no turning back.
Related
Research:
See documents:
#24024 IDC's xSP Taxonomy:
Putting the "x" Service Provider Opportunities in Perspective |
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IDC's
xSP Taxonomy: Putting "x" Service Provider
Opportunities in Perspective
Amy
Mizoras, Dennis
Byron, Gigi
Wang, Meredith
Whalen, Lee
Doyle, Katrina
Menzigian, Clare
Gillan, Jean Bozman, Debra Goldfarb, Rick
Villars, Henry Morris, Mark Winther, Lucinda
Borovick, Traci Gere |
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Feb 2001 |
Doc #24024 |
Report |
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xSP services are emerging
to address various needs within the corporate,
government, education, and nonprofit markets and
within the home. Example... |
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