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Application Service Providers --ASPs-- Gaining Acceptance.


Business/Technology Editors

NOTE TO MEDIA: Graph is available in a Smart News Release(TM) on

Business Wire's Home Page at www.businesswire.com

NATICK, Mass.--(BUSINESS WIRE)--Sept. 21, 2000

Sage Research and Ashton, Metzler & Associates

Release New Study Showing ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja).  Usage No Longer Limited to Early

Adopters

The use of Application Service Providers (ASPs) is quickly becoming a mainstream practice, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a survey of 300 US organizations recently conducted by Sage Research, Inc. and Ashton, Metzler & Associates. The fact that 8% are currently using ASPs and another 18% have plans to use their services over the next two years indicates that ASP acceptance reaches beyond the early adopters. "I find this truly amazing--while the ASPs' revenue has not met market expectations, this kind of adoption rate for a category that did not exist three years ago is astounding a·stound  
tr.v. a·stound·ed, a·stound·ing, a·stounds
To astonish and bewilder. See Synonyms at surprise.



[From Middle English astoned, past participle of astonen,
," notes Sage Research President Kathryn Korostoff.

For those organizations that are using or plan to use an ASP, they will utilize a variety of applications, with E-business related transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time.

Transaction processing systems are the backbone of an organization because they update constantly.
 being the most common. The top applications to be supplied by ASPs by year end 2001 are as shown (see related graph).

Clearly, ASP use has implications for networking suppliers, since the goal of IT departments will be to ensure that their end users do not perceive a difference between locally and remotely hosted applications. Most organizations surveyed indicate that they are most likely to access an ASP utilizing private lines, VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks.  or Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. , while they do not indicate a dominant preference among the three.

Of the 26% of organizations that will be using ASP services in the next two years, many show a willingness to pay Willingness to pay (WTP) generally refers to the value of a good to a person as what they are willing to pay, sacrifice or exchange for it. See also
  • Becker-DeGroot-Marschak method
 a premium for these services to guarantee response times or other priority levels. "This bodes well for companies that deliver QoS solutions, such as Cisco, Packeteer, and Sitara, since the ASP community will need to make investments to insure that their customers get hard, application-based QoS," concludes Jim Metzler, President of Ashton, Metzler & Associates.

For the study, network managers from 300 US organizations were surveyed regarding their existing networks and future network plans. The results are available in the report, "Transitioning to the E-Network: A Quantitative Analysis Quantitative Analysis

A security analysis that uses financial information derived from company annual reports and income statements to evaluate an investment decision.

Notes:
 of Enterprise Organizations." The 60-page report, part of a three-phase study, includes 43 tables and figures.

Two other reports are also available from the study. "Integrated Access at the WAN Edge: The Impact of Market Developments on Network Deployment" is a quantitative and qualitative description of how the access components of the enterprise WAN is evolving. "The Transition to Service Management: The Impact of Market Developments on Network Deployment" addresses the blurring of conventional boundaries between the customer premises and the carrier cloud.

The reports can be purchased separately, or as a package. For more information, please contact Sage Research at (508) 655-5400 or by email at reports@sageresearch.com.

About Sage Research

Sage Research Inc., a full-service market research firm, provides custom and syndicated demand-side research to IT vendors and Service Providers. The firm combines expertise in both qualitative and quantitative research Quantitative research

Use of advanced econometric and mathematical valuation models to identify the firms with the best possible prospectives. Antithesis of qualitative research.
 methods with an in-depth knowledge of technology markets. Since 1993, Sage Research has delivered objective and reliable data, insightful analysis, and actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action.

An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it.
 recommendations to industry leaders and innovative start-ups. For more information, visit www.sageresearch.com.

About Ashton, Metzler & Associates

Ashton Metzler & Associates is an industry leading consulting group focused on assisting organizations improve their performance by leveraging Information Technology and Human Talent for success. For more information, visit www.ashtonmetzler.com.

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Publication:Business Wire
Geographic Code:1USA
Date:Sep 21, 2000
Words:598
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