Citrix's and Microsoft's solution could allow ASPs to more easily deliver remote Web-based Windows sessions to anonymous users. And Lotus Development recently announced its Lotus Quickplace Web-based groupware collaboration software. Business-focused ISPs are gradually weaving ASP offerings into their service mix. Telephone companies also are jumping on the bandwagon. For example, Bell Atlantic announced in January a deal to host Lotus Domino server technology, giving customers the option to run their groupware on Bell Atlantic's network.
Vendors cite numerous incentives.
First, the traditional costs of code delivery to the customer are substantial. Hosting the application also could mean that ASPS can offer faster application modifications to customers with potentially less debugging work than before than before. Also, recurring-revenue charge models such as those enjoyed by ISPs are extremely appealing to developers. Even installers of traditional ERP apps, who are used to large up-front application customization charges but smaller annual maintenance fees, may be attracted to the ASP model as a way to smooth revenue bumps. Finally, a Web-based services model greatly expands the potential customer base for the ASP, conceivably offering access to the entire Internet business market.