Although ASP can meet the needs of rapid business growth, it is far from the user's requirements.
IT is getting more and more stressful. Today, many companies are forced to upgrade their internal computer application systems due to time, money, and staff pressure. These systems determine the fate of companies. This is one of the reasons why more and more companies have chosen ASP to help the company grow. For example, when Simplex.com wanted to provide trainers with an electronic center, they chose an ASP (Corio) to establish a better service system. They learned from this that ASP is the fastest way for the company to achieve growth.
In the United States, there are about one hundred companies like Corio. They mainly provide related network services for ".com" companies or similar organizations. They lease software systems to companies and provide corresponding technical support, charging a lower monthly rental. This is a very novel business for many companies, including themselves. In order to provide services directly to Simplex, Corio installed a set of Comerce One Inc’s e-procurement system on its own host and connected it to Comerce One’s global business exchange system. Through this system, Simplexis realized timely on-line processing of customer requests, proposals and product release issues.
JSD Uniphase Corp, located in St. Jones, California, is primarily engaged in the design, production, and sales of optical fibers. It also finds service providers for ASPs. The JSD business grows at an annual rate of 80%, mostly through customer purchases, but none of these purchasing customers can provide effective network infrastructure facilities to solve corporate financial issues. As a result, JDS found Qwest Cyber ​​Solution, an ASP service provider for Denver, and established the Oracle Financial Services System.
For JDS, they do not have the time or infrastructure or staff to complete this work. Choosing ASP is not an economic reason but purely the best choice for the company's business strategy. In this way, they can concentrate on their operations and benefit the company's expansion.
According to a survey conducted by Information Week Research on 655 IT industries, there are two major reasons why companies choose ASP service providers instead of hiring full-time computer workers and rapidly developing markets. Currently, of the 200 companies that need ASP services, including Simplex and JSD Uniphase, 62% are fully committed to ASPs to handle the development and construction of related websites. There are no dedicated IT staff within the company.
There are many advantages to ASP service providers: save IT staff recruitment, training, and job procedures, effectively save time, and quickly establish a network application system; ASP is responsible for software purchase, development, and authorization issues; from the e-mail system To the company's resource arrangements, customer service management, etc., do not have to worry about users; and some ASP services can also be reduced by 40% than the company's own construction. There are so many benefits, but how can you not see ASP in the market?
According to Information Week Research's telephone survey of IT managers and heads of companies, 26% of companies have adopted ASP services, 9% are considering using them, and 65% have no plans. The removal of 38% is because the company's policy does not allow foreign aid to rely on the outside, and the entire user base has shown a cautious attitude towards ASP issues.
Of those companies that do not consider ASP services, 30% believe that ASP does not save costs, and 29% think that their own customized system applications are more competitive. In particular, larger companies want to have their own related application systems and match them with other systems. Security and lack of control are the main reasons why companies do not want to consider ASP. Some companies are skeptical about whether they can insist on providing long-term services.
There is no doubt that analysts have also reduced their forecasts. Last year, they all had a strong optimism with ASP and believed that its development speed will be very fast. The estimated output value will increase from 889 million yuan in 1998 to 22.7 billion in 2003. However, analysts now believe that this number is overestimated by 25% to 30%. They believe that the current situation is that the market is in a period of awakening. ASP must do better in order to reflect its own value, and more users will choose them. This is especially important for companies that already have IT staff and their own infrastructure.
Obviously, the market is still only in the period of enlightenment. A lot of interest, but not really used. Although some companies have also found ASP, they feel that they can provide too few things and are far from meeting customer requirements. Through practice, some companies believe that many ASPs merely lease their hosts to us. They cannot provide complete system development, construction, and support services. Moreover, their services cannot save costs. They should provide higher-level services. Some ASPs are not as well known to customers. In some cases, many sub-contracts provide packages that make customers feel very uneasy.
Although the expected costs, operational performance guarantees, and savings of IT staff are the main factors attracting ASP service providers, the credibility, quality, and services provided to customers must also keep up. When asked, why 58% of companies think that they are not willing to cooperate with ASP, the quality of services provided to customers is not high enough.
At present, the systems provided by ASP rarely change according to customer requirements. Without change, it means that ASP service providers can use the existing system software over and over again and increase their revenue accordingly. This approach is fine for small companies with no IT staff or for some initial users.
LoanCity.com is a company that provides online mortgages and loans because it cannot set up and develop its own IT team and instead rely on Corio's help to complete the development of PeopleSoft, Siebel and other market-related application network systems. They want to take the lead in B to B. LoanCity now spends only $35,000 per month to achieve their stated goals. If you build on your own, you need 3 million US dollars.
Some ASP vendors, including Oracle Business Online, will not change core technologies. There will also be no change to the user's front-end display and back-end support systems. Corio, however, can change the front-end interface and provide corresponding application system back-end support according to the user's requirements. This kind of service customer still likes, but it takes a lot of time and money.
For ASP, of course, the more universal the system is, the better it can be reused. However, this is inconsistent with the nature of commercial operations. ASP can rely on a general approach to solve 80% of the company's network problems, but the remaining 20% ​​is often the most needed by customers. In part, it is also the part that ASP should strive to develop and implement. Achieving better system integration and customer support is extremely important for ASPs, especially when they want to truly become the backbone of the market.
The notion that 'we can't change it or integrate with other systems' may be okay for a junior user, but certainly not for long. What is lacking in the market is a complete set of solutions. Before ASP can provide packaged system services, there will not be too many companies to join. However, with the maturity of Microsoft's BizTalk technology and the addition of XML, ASP can easily provide enterprises with a complete solution. He added later.
In some ways, ASP is still indispensable. It can grow rapidly with the company's business growth. In addition, ASP also shows strong advantages for application systems that only use integrated applets. For example, Niku Corp. in Sequoia, California, uses this application system to connect professional services through the Internet. In general, such applications can also be purchased directly for certain commercial organizations, especially those that have problems but cannot be solved promptly because the company's IT department is too busy.
There are more companies using ASP to provide a single function. According to a survey by Information Week Research, 30% of ASP users only use one or two functions of ASP, and 21% use 5-6 functions.
The USA/net Inc., an ASP provider based in Nitsch, is providing a comprehensive email system solution for various service outlets of Galileo International Inc., which provides travel services. USA/net provided Email hosting services for 12,000 travel agencies nationwide. It has software in this area that can help companies establish accounting systems, agency payment systems, and related operating systems. With its services, Galileo will no longer have to pay for the software's royalties or create its own network management system. The company's data volume is very large, but the management of the Email system is not their main business. After using ASP's services, it can leave energy to deal with the company's main business.
In fact, many companies do not need to have a dedicated department to take charge of the Email system. Email system service is the second largest service provided by ASP, which is second only to providing host web service.
For some companies, whether or not an ASP vendor can meet e-commerce requirements immediately and provide long-term stable service is also a key factor.
Of course, if the market lacks talents in IT, the demand for ASP will be great. For most users, using ASP is to let Others build and manage an application system.
When all of today's start-up companies have grown up, ASP will still find new markets.
IT is getting more and more stressful. Today, many companies are forced to upgrade their internal computer application systems due to time, money, and staff pressure. These systems determine the fate of companies. This is one of the reasons why more and more companies have chosen ASP to help the company grow. For example, when Simplex.com wanted to provide trainers with an electronic center, they chose an ASP (Corio) to establish a better service system. They learned from this that ASP is the fastest way for the company to achieve growth.
In the United States, there are about one hundred companies like Corio. They mainly provide related network services for ".com" companies or similar organizations. They lease software systems to companies and provide corresponding technical support, charging a lower monthly rental. This is a very novel business for many companies, including themselves. In order to provide services directly to Simplex, Corio installed a set of Comerce One Inc’s e-procurement system on its own host and connected it to Comerce One’s global business exchange system. Through this system, Simplexis realized timely on-line processing of customer requests, proposals and product release issues.
JSD Uniphase Corp, located in St. Jones, California, is primarily engaged in the design, production, and sales of optical fibers. It also finds service providers for ASPs. The JSD business grows at an annual rate of 80%, mostly through customer purchases, but none of these purchasing customers can provide effective network infrastructure facilities to solve corporate financial issues. As a result, JDS found Qwest Cyber ​​Solution, an ASP service provider for Denver, and established the Oracle Financial Services System.
For JDS, they do not have the time or infrastructure or staff to complete this work. Choosing ASP is not an economic reason but purely the best choice for the company's business strategy. In this way, they can concentrate on their operations and benefit the company's expansion.
According to a survey conducted by Information Week Research on 655 IT industries, there are two major reasons why companies choose ASP service providers instead of hiring full-time computer workers and rapidly developing markets. Currently, of the 200 companies that need ASP services, including Simplex and JSD Uniphase, 62% are fully committed to ASPs to handle the development and construction of related websites. There are no dedicated IT staff within the company.
There are many advantages to ASP service providers: save IT staff recruitment, training, and job procedures, effectively save time, and quickly establish a network application system; ASP is responsible for software purchase, development, and authorization issues; from the e-mail system To the company's resource arrangements, customer service management, etc., do not have to worry about users; and some ASP services can also be reduced by 40% than the company's own construction. There are so many benefits, but how can you not see ASP in the market?
According to Information Week Research's telephone survey of IT managers and heads of companies, 26% of companies have adopted ASP services, 9% are considering using them, and 65% have no plans. The removal of 38% is because the company's policy does not allow foreign aid to rely on the outside, and the entire user base has shown a cautious attitude towards ASP issues.
Of those companies that do not consider ASP services, 30% believe that ASP does not save costs, and 29% think that their own customized system applications are more competitive. In particular, larger companies want to have their own related application systems and match them with other systems. Security and lack of control are the main reasons why companies do not want to consider ASP. Some companies are skeptical about whether they can insist on providing long-term services.
There is no doubt that analysts have also reduced their forecasts. Last year, they all had a strong optimism with ASP and believed that its development speed will be very fast. The estimated output value will increase from 889 million yuan in 1998 to 22.7 billion in 2003. However, analysts now believe that this number is overestimated by 25% to 30%. They believe that the current situation is that the market is in a period of awakening. ASP must do better in order to reflect its own value, and more users will choose them. This is especially important for companies that already have IT staff and their own infrastructure.
Obviously, the market is still only in the period of enlightenment. A lot of interest, but not really used. Although some companies have also found ASP, they feel that they can provide too few things and are far from meeting customer requirements. Through practice, some companies believe that many ASPs merely lease their hosts to us. They cannot provide complete system development, construction, and support services. Moreover, their services cannot save costs. They should provide higher-level services. Some ASPs are not as well known to customers. In some cases, many sub-contracts provide packages that make customers feel very uneasy.
Although the expected costs, operational performance guarantees, and savings of IT staff are the main factors attracting ASP service providers, the credibility, quality, and services provided to customers must also keep up. When asked, why 58% of companies think that they are not willing to cooperate with ASP, the quality of services provided to customers is not high enough.
At present, the systems provided by ASP rarely change according to customer requirements. Without change, it means that ASP service providers can use the existing system software over and over again and increase their revenue accordingly. This approach is fine for small companies with no IT staff or for some initial users.
LoanCity.com is a company that provides online mortgages and loans because it cannot set up and develop its own IT team and instead rely on Corio's help to complete the development of PeopleSoft, Siebel and other market-related application network systems. They want to take the lead in B to B. LoanCity now spends only $35,000 per month to achieve their stated goals. If you build on your own, you need 3 million US dollars.
Some ASP vendors, including Oracle Business Online, will not change core technologies. There will also be no change to the user's front-end display and back-end support systems. Corio, however, can change the front-end interface and provide corresponding application system back-end support according to the user's requirements. This kind of service customer still likes, but it takes a lot of time and money.
For ASP, of course, the more universal the system is, the better it can be reused. However, this is inconsistent with the nature of commercial operations. ASP can rely on a general approach to solve 80% of the company's network problems, but the remaining 20% ​​is often the most needed by customers. In part, it is also the part that ASP should strive to develop and implement. Achieving better system integration and customer support is extremely important for ASPs, especially when they want to truly become the backbone of the market.
The notion that 'we can't change it or integrate with other systems' may be okay for a junior user, but certainly not for long. What is lacking in the market is a complete set of solutions. Before ASP can provide packaged system services, there will not be too many companies to join. However, with the maturity of Microsoft's BizTalk technology and the addition of XML, ASP can easily provide enterprises with a complete solution. He added later.
In some ways, ASP is still indispensable. It can grow rapidly with the company's business growth. In addition, ASP also shows strong advantages for application systems that only use integrated applets. For example, Niku Corp. in Sequoia, California, uses this application system to connect professional services through the Internet. In general, such applications can also be purchased directly for certain commercial organizations, especially those that have problems but cannot be solved promptly because the company's IT department is too busy.
There are more companies using ASP to provide a single function. According to a survey by Information Week Research, 30% of ASP users only use one or two functions of ASP, and 21% use 5-6 functions.
The USA/net Inc., an ASP provider based in Nitsch, is providing a comprehensive email system solution for various service outlets of Galileo International Inc., which provides travel services. USA/net provided Email hosting services for 12,000 travel agencies nationwide. It has software in this area that can help companies establish accounting systems, agency payment systems, and related operating systems. With its services, Galileo will no longer have to pay for the software's royalties or create its own network management system. The company's data volume is very large, but the management of the Email system is not their main business. After using ASP's services, it can leave energy to deal with the company's main business.
In fact, many companies do not need to have a dedicated department to take charge of the Email system. Email system service is the second largest service provided by ASP, which is second only to providing host web service.
For some companies, whether or not an ASP vendor can meet e-commerce requirements immediately and provide long-term stable service is also a key factor.
Of course, if the market lacks talents in IT, the demand for ASP will be great. For most users, using ASP is to let Others build and manage an application system.
When all of today's start-up companies have grown up, ASP will still find new markets.
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