Online Computing Infrastructure: Enabling Technologies in the Emerging ASP Industry

Published by: In-Stat

Published: Mar. 1, 2000 - 53 Pages

Table of Contents

Table of Contents

Market and Sample Demographics

Demographics: Total Market

Demographics: Survey Respondents

Firmagraphics: Focus, Size, and Scope

Income from Application Services

Number of Years Offering Application Services

Roots: Principal Business Activities

Customers and Users

Current Business Models

Portfolio of Applications

Leading Value Proposition

Use of Service Level Agreements

Levels of Service Availability Offered

Outside Services: Current Usage and Expectations

Factors Affecting Pricing Structure

Spending on IT Infrastructure and Services

Annual IT Budgets: Current ASPs

Allocation of IT Budgets: Current ASPs

Spending on IT Infrastructure and Services: Total ASP Market

Systems Infrastructure Requirements

Servers and Storage

Operating Systems

Network Infrastructure Requirements

Network Hardware Vendors

Network Services and Customer Connectivity

Rankings of Vendors Enabling

ASPs

#1: Cisco

#2: Microsoft

#3: Sun Microsystems

#4: Oracle

#5: IBM

Top Carrier: AT&T

Factors Impacting Infrastructure Requirements

#1: "More Customers"

#2 & 3: "Adding Value-Added Services" and "More Applications Hosted"

#4: "Security"

#5: "Increased Adoption of Broadband"

Major Inhibitors to Success

#1: "Shortage of Qualified IT Staff"

#2: "Lack of User Awareness"

#3 & 4: "Performance Problems" and "Last Mile Connectivity"

#5: "Lack of Financial Resources"

Conclusions: Opportunities, Partnering, and Positioning

ASPs are Optimistic but Need Guidance

Infrastructure Providers Should Partner, Too

Positioning in 2000

Scope, Methodology, Definitions

Scope

Methodology

Definition of "Application Service Provider"

List of Tables

Table 1: Main Focus of Application Services Business - All Respondents

Table 2: ASPs by Size of Business: Annual Revenues - 1999, All Respondents

Table 3: Percent Income from Application Services - 1999-2000, All Respondents

Table 4: Average Number of Years Offering Application Services - Current ASPs

Table 5: ASP Customers by Type - 1999-2000, All Respondents

Table 6: ASPs by Size of Business: Number of Customers - 1999, Current ASPs

Table 7: ASPs by Size of Business: Expected Number of Customers - 2000, All Respondents

Table 8: ASP by Size of Business: Number of Users - 1999, Current ASPs

Table 9: ASP by Size of Business: Expected Number of Users - 2000, All Respondents

Table 10: Portfolio of Applications Offered as "Services" - 1999-2000, All Respondents

Table 11: SLAs: Levels of Availability Offered and Levels Chosen by Customers - Current ASPs

Table 12: Factors Determining an ASP's Pricing Structure - 1999-2000, All Respondents

Table 13: Annual IT Budget - 1999-2000, Current ASPs

Table 14: Allocation of IT Budget ($) - 1999-2000, Current ASPs

Table 15: Spending on IT Infrastructure and Services ($) - Total US ASP Community

Table 16: Number of Servers in Use - 1999-2000, All Respondents

Table 17: Number of Servers of Top 5 Vendors (Averages) - 1999-2000, All Respondents

Table 18: Primary Operating Systems Installed - 1999-2000, All Respondents

Table 19: All Operating Systems Installed - 1999-2000, All Respondents

Table 20: Primary Operating System Installed at ASP by Application - Current ASPs

Table 21: Routing and Switching Capabilities (Number of Capable Ports) - 1999-2000, All Respondents

Table 22: Technologies Used to Connect Servers to the Backbone - All Respondents

Table 23: Technologies Used to Address Load-Balancing - All Respondents

Table 24: Number of Lines Supported by Type - 1999-2000, Total Respondents

Table 25: Rankings of Vendors Enabling ASPs (Scale: 1 to 5) - All Respondents

Table 26: Factors Impacting Future Infrastructure Requirements - All Respondents

Table 27: Major Inhibitors to Offering Application Services - Current ASPs

List of Figures

Figure 1: Application Service Providers by Target Market - US 2nd Half, 1999

Figure 2: Level of Involvement in IT Infrastructure Procurement - All Respondents

Figure 3: Respondents by Job Title - All Respondents

Figure 4: ASPs by Size of Business: Number of Employees - All Survey Respondents

Figure 5: Principal Business Activity - All Respondents

Figure 6: Leading Value Proposition - Current ASPs

Figure 7: Use of Service Level Agreements - Current ASPs

Figure 8: Current Usage of Outsourcing Services - Current ASPs

Figure 9: Infrastructure Currently Outsourced by ASPs - ASP Currently Outsourcing

Figure 10: Expected Changes to IT Budget - Current ASPs

Figure 11: Allocation of IT Budget - 1999, Current ASPs

Figure 12: Single Most Important Factor for Server Selection - Current ASPs

Figure 13: Primary Network Hardware Vendor for ASPs

Abstract

A variety of service providers are positioning themselves to provide application hosting via the Internet. This new breed of application service providers (ASPs) includes ISPs, traditional telecom providers, and systems and software companies. The emergence of the ASP business model will dramatically alter the information technology (IT) landscape, as ASPs install the IT infrastructure to support business-critical hosted applications, and as end-users adapt their purchasing behavior to outsource their application software.

Cahners In-Stat Group's ASP multi-client study reflects the results of comprehensive interviews with 100 active and potential ASPs, examining ASP plans to procure, implement, and upgrade their IT infrastructure to support these new services. In-Stat also researched which applications will be offered first and links applications deployment to infrastructure requirements.

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