GIA Predicts Growth of Application Service Provider (ASP) Hosting Services to Reach $129.4 Billion by 2017
GIA unveiled a new and exhaustive global report on Application Service Provider (ASP) Hosting Services market. The report elucidates the workings of ASPs in details and also predicts the growth of the Application Service Provider (ASP) Hosting Services to US$129.4 billion by the year 2017.
This proposed development is attributed to factors like “Internet connectivity, developments in bandwidth intensive, high-speed broadband technologies, falling cost of M2M communications, growing limitations in data center space, limited power and cooling capacity, and increasing energy prices, among others.”
The report by Global Industry Analysts provides an insight on the growth of Application service provider, which is a third party business that hosts, arranges and implements application software from centrally located servers through Internet on contracts and leases.
These services have gained popularity in the last few years as they have reduce overall costs and increased efficiency by decreasing cost of ownership and capital expenditures. The survey also notes that it was the 2007-2009 recession that really helped ASP services to take off, along with factors like the ever-changing business climate and reduced budgets by companies.
The report notes that Customer Relationship Management (CRM) along with industry specific applications is touted to be the chief ASP applications, but customized applications is a distant dream and currently not available.
To survive in the competitive market, ASPs are now focusing their energies on developing services that can flawlessly integrate with existing legacy applications. Focusing on customer service, security features and enhanced multimedia features are also part of the gameplay.
The US is the largest taker of the Application Service Provider (ASP) Hosting Services and Asia-Pacific is predicted to have the strongest growth with a projected CAGR of 19.1 percent.
Edited by Jennifer Russell