IDC Begins Investigation to Quantify the Financial Impact of ASPs

FRAMINGHAM, MA – JANUARY 24, 2001 – IDC – the company that coined the phrase ASP – has announced the launch of a major research initiative designed to uncover the financial impact of ASPs. The study, The Financial Impact of ASPs, will investigate the common belief that purchasing application services through an ASP can return a high yield as a technology investment. This study will provide sponsors the ability to differentiate themselves in the market by demonstrating to clients an intricate understanding of steps that can be taken to maximize return on investment (ROI) for ASP implementations.

 

"While the ASP market is forecast to continue strong growth over the next five years, two burning questions are starting to raise concern from prospective end-user customers," said Stephen Graham, vice president of IDC's Global Software Partnering and Alliances research. "Is this a financially sound investment, and how do I maximize my return on investment? Founded on the principles developed by landmark IDC ROI studies such as Lotus Notes: Agent of Change, and The Foundations of Wisdom: The Financial Impact of Data Warehousing, this project will analyze the experience of more than 50 end-user organizations that have implemented ASP solutions."

IDC will employ a case study technique to collect information and build several financial models focusing on an ROI measure. In addition to these models, qualitative background information will be collected to help the interviewers understand the factors contributing to success in each installation. These experiences will be summarized to reveal the site characteristics that distinguish companies’ varying levels of return on ASP implementations.

"Sponsors of this ground-breaking study will benefit on many levels," said Meredith Whalen, director of ASP and Internet Services research at IDC. First, sponsors will have the ability to present a series of actual ROI scenarios to customers. In addition, the study will provide sponsors with an advanced understanding of factors that contribute to financial success – which can be translated into the value provided to clients. Finally, the study will reveal the financial impact of ASP implementations at an industry level, which in turn, is expected to grow the market as a whole.

The first wave sponsorship cut-off date is March 1, 2001. For more information on how to become a sponsor, and the benefits to sponsors that commit prior to March 1st, please contact Christopher Bednarz at 508-988-7553 or 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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