A
new study suggests there is a huge opportunity this year for the
networking firms and related computing companies that can provide
systems for the fast-growing application service provider
niche.
Applications service providers, or ASPs, are expected to spend
nearly $1 billion on technology in the United States this year to
build their businesses, according to market research firm Cahners
In-Stat Group. And the likes of network equipment providers Cisco
Systems and Sun Microsystems are expected to reap the benefits.
An ASP
lets a business access a software program across a network, rather
than running that software on a local system. The theory goes that
by outsourcing a company's software needs a business does not have
to worry about the overhead costs--such as network and computer
administration--associated with technology.
Network equipment providers, which provide the high-speed
connections that let an ASP send software across a network or the
Internet, have jumped on this trend,
hoping to reap a windfall.
Other companies in line to gain a piece of the ASP technology
market include Oracle, IBM and Microsoft, among others, according to
the study released today.
In-Stat's research also found that the number of ASPs in the
market has grown from 70 last year to more than 100 by the first
quarter of this year. Those ASPs say the primary issue facing them
is building out their technology infrastructure so they can handle
more business, the research firm found.
