In each of these cases, things were not actually as bad as they could have been. Still, an IT type can get pretty worked up thinking about the implications of an ASP failure. ASPs, of course, came on the scene in a big way about two years ago. In typical fashion, ASPs popped up quickly. The idea seemed almost too good to be true.
Companies rent an application online instead of running it on the corporate network.
Of the more than 480 retail ASPs that have entered the market, I suspect that more than half will tank by the middle of next year. And if you're wondering why most will die off, let me give you three reasons. This space simply has too many vendors. IT organizations have responded favorably to the ASP model, but the market is still too crowded for the current number of ASP players. Many of the players in this space lack differentiation and have to give incredible deals just to build market share.