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| GartnerGroup's Dataquest Says Application Service Provider Market to Surpass $22 Billion by 2003 | |||
| San Jose, Calif., October 25, 1999-The IT services industry is receiving a strong boost from the application service provider (ASP) market, as worldwide ASP services revenue is projected to grow from $889 million in 1998 to $22.7 billion in 2003, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). The worldwide ASP market is on pace to reach $2.7 billion by the end of 1999. Dataquest analysts said the ASP market is viable, with enormous opportunity in the emerging and middle market as well as for larger enterprise organizations. | |||
| "The ASP model has emerged over the past two years as one of the foremost global trends driving phenomenal growth in the applications outsourcing market," said Ben Pring, principal analyst for Dataquest's Enterprise Applications Outsourcing Worldwide program. "This new model incorporates infrastructure, implementation, and management services into one bundled, monthly price point where software licenses are sometimes included." | |||
| Dataquest defines the ASP marketplace as the provisioning (and servicing) of business process-enabling applications delivered over a network via a subscription-based outsourcing contract. Providers of this type of service are referred to as ASPs. The combination of several major technological and business trends has led to the emergence of the ASP model. Dataquest analysts said, over time, this model has the potential to become a significant catalyst of growth in broader strategic solutions such as customer relationship management, supply-chain, and electronic commerce. | |||
| "A combination of several technological and business trends has led to the emergence of the ASP model, including evolution of IT outsourcing into business process outsourcing, standards-based business processes through IT templates, and the increasing ubiquity of networks within and across organizations," said Asha N. May, industry analyst for Dataquest's Applications Outsourcing Worldwide program. "As a consequence, the ASP market has the potential to become an extremely important segment of the overall IT industry within a relatively rapid period." | |||
| This information is produced by Dataquest's Applications Outsourcing Worldwide program. This program provides in-depth research and analysis of the opportunities, key trends, user requirements, market leaders, and emerging players in the applications outsourcing marketplace to support business development and market-planning efforts. Additional information on this program is available on Dataquest's Web site http://www.dataquest.com/public/static/home/ourservices/scopes/n06apotww.html. | |||
| To subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com. | |||
| GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. www.gartner.com. | |||
| As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com. | |||
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