March/April 2001

• Communications Applications Top The List of ASP Services Accessed
• Revenues From Location-based Services To Grow
• Cahners Study Shows Maturity Of Broadband To MTU Market
• Mobile Commerce Market To Skyrocket By 2006
• Many Hosted Services Already On The Market
• Asia, SME Markets Hot For Hosted Services
• M-commerce Market On The Rise In Japan
• Remote Office Growth Presents Opportunities For Service Providers

Communications Applications Top The List of ASP Services Accessed
A survey of 137 senior- and executive-level managers and IT professionals commissioned by the ASP Industry Consortium and performed by Zona Research showed 33.6 percent of respondents are accessing communications applications from an ASP. Financial and accounting applications are being accessed by 24.8 percent of those surveyed, followed by e-commerce services including catalogs, transactions, and billing, at 21.2 percent. CRM applications are being accessed by 19 percent of respondents, and education and training came in at 18.2 percent. Security was cited as the number one concern among respondents when considering a hosted application.

Revenues From Location-based Services To Grow
A study from Allied Business Intelligence states that world revenues from location-based services will rise from about $1 billion in 2000 to more than $40 billion by 2006. The U.S. Enhanced 911 mandate, as well as new revenue streams from carrier services will contribute to the growth, according to the study.

Cahners Study Shows Maturity Of Broadband To MTU Market
Sales of broadband equipment and services for the multiple tenant unit (MTU) marketplace are predicted to jump from $370 million in 2000 to $4.8 billion by 2004, according to Cahners In-Stat Group. MTU owners are increasingly deploying broadband to attract and retain tenants and offer new services. The Cahners study predicted that spending on services would outpace hardware for that space by 2004, with MTU owners spending $777 million on hardware and $4 billion on services by that date.

Mobile Commerce Market To Skyrocket By 2006
A study from Strategy Analytics forecasts the demand for mobile commerce services will explode over the next five years and the market will grow to $230 billion by 2006. The study predicted 325 million people will use mobile commerce services by then, but that wireless network operators will take in only three percent of the total revenue generated from those services.

Many Hosted Services Already On The Market
A Survey.com report shows that 47 percent of the 1,500 ASP respondents are already offering services, and the remainder are in the planning stages. An additional survey of ASP customers and prospects showed just under 50 percent of respondents are using ASPs for services, while the remainder indicated they intend to use them in the near future.

Asia, SME Markets Hot For Hosted Services
Asia/Pacific businesses are expected to increase their spending on outsourced services from just under $6 billion in 2000 to more than $10 billion by 2004, according to an IDC study. More than 90 percent of businesses in that region fall into the small to medium-sized enterprise (SME) category, which is expected to benefit greatly from hosted technology services.

M-commerce Market On The Rise In Japan
Japan's wireless Internet market value will rise about 1,400 percent by 2005, according to a study by Jupiter Media Metrix K.K. Including transaction values for mobile phone content, shopping, and advertising, the market will jump from last year's value of 39 billion yen to 594 billion yen ($5.11 billion) in 2005. The number of Net-enabled phone users in that market is expected to grow from 27 million in 2000 to 66 million by 2005, according to the study.

Remote Office Growth Presents Opportunities For Service Providers
A Cahners In-Stat study shows that U.S. businesses support more than two million remote branch offices today, and the majority are in the enterprise market. This growing number is likely to increase demand for hosted applications, remote management solutions and services, and VPN services in the coming years, according to the study. Many decision makers would like to outsource IT management and support in these remote locations, says Cahners.

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