Web Hosting Is Most Widespread xSP Service According to Customers, IDC Says

FRAMINGHAM, MA – JUNE 27, 2002 – The new dependence growing on network-delivered services is evident among customers tracked by IDC’s latest xSP survey of IT managers and their use of xSP services. Web hosting services remain the most widely used and the most widely delivered services; however, only 5% of respondents considered increasing the purchase of the services in the future, suggesting that future spending plans on xSP services will be focused in new areas.


"Despite all the bad press, economics, and financial brouhaha, customers are becoming more comfortable and more familiar with and gaining interest in using services from xSPs," said Laurie A. Seymour, IDC’s xSP program manager. The xSP market (comprised of one-to-many, externally managed, network-delivered, fee-based services) includes a wide and growing range of services such as content, business process or storage, for businesses and consumers.

According to IDC, customers will continue to raise the bar on service and support from xSPs. The two highest-ranked factors that influence the customers in their selection of an xSP are the xSP’s ability to deliver on its service level agreements and their ability to offer excellent customer service. "Those xSPs that focus their mantra around servicing customers in ways that ‘break the sound barrier’ for service delivery will offer an extremely valuable and almost irresistible value proposition to their customers," Seymour said.

IDC’s new bulletin, U.S. Customer Demand for xSP – Delivered Information Technology Services (IDC #27367) tracks the January 2002 survey results of IT managers and their use of xSPs services. The survey covers current and planned purchases of the following xSP services: application management services, application services, storage services, network/systems management services, content delivery services, Web hosting services, and other IT services.

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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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