Despite sizing differences, the conclusion among analysts is consistent - the compelling benefits to enterprises of an application service delivery model will drive the formation and extreme growth of the market for application services. Analyst forecasts indicate that significant opportunities exist for ASPs and vendors supporting the ASP industry to benefit from the anticipated demand for application services. Players providing ASP industry functions including hosting, application development, sales, support, networking, consulting, billing, and collections as well as providers of enabling technology have an opportunity to participate in the development and growth of this computing evolution. Despite the forecasted growth and opportunity potential this market evolution offers, the ASP industry is still in its early stages of development. ASPs and supporting vendors will face unique and significant challenges in developing the critical capabilities of managing and delivering mission critical applications and effectively coordinating multiple players in the application service value chain.
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