While companies recognize they need cutting-edge technologies to be competitive, these companies do not want to spend the resources and have the headaches of a sprawling IT department. A more attractive option is to outsource IT functions. This has become much easier with the Net, which allows for IT services to be centralized on outside servers. ASPs can manage these services and companies can focus on their core competencies. The business model is simple.
Companies pay a monthly fee for the services.
This is very different than the traditional model for software, in which companies license technologies. Over the past ten years, Citrix has proven to be a company that knows how to seize new opportunities. Yet, the company leverages its key technologies, especially those from Citrix's flagship product MetaFrame. Yes, the ASP space will increasingly become more competitive, with Sterling Software, Sun Microsystems, Santa Cruz Operation, and Microsoft pressing hard. Then again, the market is expansive and big enough for many high-quality competitors.