Spending on U.S Web-Native Application Service Provider Services to Grow to Over $1.5 Billion by 2006, According to IDC

FRAMINGHAM, MA – JUNE 5, 2002 – Spending on Web-native ASP services in the United States is expected to grow from $200 million in 2001 to over $1.5 billion by 2006, according to IDC. Broadly defined, Web-native ASPs are characterized by their software, implementation, integration, and customer support products, services, and processes that are built specifically for one- to-many Internet delivery. Web-native ASPs must remain flexible and exploit new opportunities, such as Web services, to capitalize on this growing market.


"Web-native ASPs are particularly suited to creating, aggregating, and delivering self-describing and discrete Web services applications as components that can be called on demand," said Karen Moser, research manager for IDC's ASP and Application Management Services program. "As new applications emerge based on the Web Services Architecture (WSA) as defined by IDC, Web-native ASPs should be at the forefront of this trend."

Web-native ASPs are challenged with developing and executing effective marketing and sales strategies. Until channel outlets adapt and accept ASP services, Web-native ASPs must ally themselves with other well-known brands and seek to influence those who influence the software buying decisions of small to medium-sized companies.

Opportunities for Web-native ASPs to gain market share also exist by offering private-labeled services through partnerships with major telecommunications firms, IT services outsourcers, and other professional services firms, and developing business process support and execution skills to augment their core application offerings.

IDC's recently released document, U.S. Web-Native Application Service Provider Forecast, 2002-2006 (IDC #26966) forecasts U.S. customer spending on Web-native ASP services for 2001 to 2006. Significant trends such as macroeconomics, technology developments, and market characteristics are also explored.

To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email ctoffel@idc.com.

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