IDC Announces Top 10 ASP List

FRAMINGHAM, MA – APRIL 25, 2001 – IDC identifies the 10 companies that captured the most customer spending on ASP services in 2000 in a new document. In aggregate, the top 10 application service providers (ASPs) accounted for 45% of worldwide customer spending on ASP services in 2000. The top 5 are as follows:

 

1. USinternetworking

2. A tie for second between TriZetto Group and Oracle

3. Interliant

4. Qwest Cyber.Solutions

"We credit the companies in the top 10 ASP list for not only managing to stay afloat but also for gaining traction during a slippery time," said Meredith Whalen, director of IDC’s Internet and ASP Services research. "However, being a leader in 2000 does not guarantee leadership in 2001. There is still a lot of opportunity in this market, and there are plenty of ASPs waiting in the wings who could easily move into the top 10 next year."

Looking at the companies on IDC’s top 10 list reveals some interesting realities about the ASP market. For example, although IDC’s list is based on worldwide ASP spending, all the companies in the top 10 are U.S. based. According to IDC, this is not surprising because U.S. customers represent the majority of ASP spending.

"Additionally, TriZetto’s position near the top of our list illustrates that focus on a single industry can result in some significant gains for an ASP," Whalen said. "Likewise Interliant’s appearance in the top five is a good reminder to the market that ASP services are not just centered around enterprise applications because Interliant has attainted its success primarily through offering ASP services around collaborative applications."

In measuring ASP revenue, IDC used its standard definition of ASP services, which excludes pure hosting or application management services. IDC measured customer spending on ASP services that occurred within the calendar year 2000, not booked contract values. Additionally, IDC measured retail ASP revenues, not wholesale ASP revenues.

IDC’s bulletin, IDC’s Top 10 ASPs (IDC #B24563), identifies the 10 ASPs that captured the most customer spending in 2000. The bulletin also names five ASPs who fell just short of the top 10 list, and five more ASPs who fell under the radar, but who IDC thinks are ones to watch. To purchase this bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com. For more information on IDC’s Application Service Providers research program, please contact Chris Bednarz at cbednarz@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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