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Glimmer Of Hope For Some ASPs Application service providers are adding customers steadily.(INTERNET & TECHNOLOGY)
Byline: J. BONASIA
Few software trends have sparked as much hype, and then such a backlash, as application service providers.
Many tech observers touted the ASP market as software's next big thing when it emerged in the late 1990s. The concept is simple -- software as a service. Instead of owning and running software applications, companies can rent the software from ASPs, accessing it cheaply via the Internet. Some sources say as many as 1,000 ASPs sprouted up overnight.
Then the bubble burst. Software spending plummeted. The rush to use the Internet for business slowed. Most ASPs, founded with little financial backing, disappeared.
"There is a certain amount of hype with any emerging technology market," said Jessica Goepfert, an International Data Corp. analyst. "With any bandwagon that comes along, the wheels are eventually going to come off."
But then, say analysts, certain companies find the correct way to affix the wheels.
Market tracker Gartner Inc. sees few of today's ASPs emerging as winners. Yet despite the doom and gloom of the current market, Gartner says ASPs are poised for mainstream market acceptance.
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