Evaluating the application service provider (ASP) business model: The challenge of integration

P. Seltsikas, W. L. Currie

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

45 Citations (Scopus)

Abstract

The paper evaluates the application service provider (ASP) business model. It draws from a large scale research program funded by the European Union and Engineering and Physical Sciences Research Council (EPSRC), into the emerging ASP industry where software is delivered as a service, priced on a per-seat, per month basis. Tracking a taxonomy of ASPs (pure-play, vertical, horizontal, enterprise and enabler) through longitudinal case study research, the paper suggests that two major inhibitors have contributed to the slow growth of this market. The first is economic conditions evidenced by the dot.com downturn, and the second is lack of education in the potential customer marketplace. The paper tracks the strategies of two major players within the ASP industry: Cable & Wireless, a traditional UK telecoms company moving into the IP market, and Jamcracker, a recently established US enterprise web services company. Through careful evaluation of key performance indicators (KPIs) for evaluating ASPs and customer perceptions of the software-as-a-service proposition (and e-business broadly conceived), the paper argues what integration of applications will be the major challenge if the ASP business model is to survive in the overcrowded and intensely competitive e-business sector.

Original languageEnglish
Title of host publicationProceedings of the 35th Annual Hawaii International Conference on System Sciences, HICSS 2002
EditorsRalph H. Sprague
PublisherIEEE Computer Society
Pages2801-2809
Number of pages9
ISBN (Electronic)0769514359
DOIs
Publication statusPublished - 2002
Externally publishedYes
Event35th Annual Hawaii International Conference on System Sciences, HICSS 2002 - Big Island, United States
Duration: 7 Jan 200210 Jan 2002

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2002-January
ISSN (Print)1530-1605

Conference

Conference35th Annual Hawaii International Conference on System Sciences, HICSS 2002
Country/TerritoryUnited States
CityBig Island
Period7/01/0210/01/02

Keywords

  • Application software
  • Application specific processors
  • Business
  • Communication industry
  • Companies
  • Computer industry
  • Councils
  • Inhibitors
  • Large-scale systems
  • Taxonomy

ASJC Scopus subject areas

  • General Engineering

Fingerprint

Dive into the research topics of 'Evaluating the application service provider (ASP) business model: The challenge of integration'. Together they form a unique fingerprint.

Cite this