ASPects: April 30, 2001

By eweek  |  Posted 2001-04-30

People Using PeopleSoft

The PeopleSoft 8 application package is an ASP winner, AMR Research says, and the software vendor is managing its ASP partners well. "PeopleSoft understands the benefits of effective channel management to limit channel conflict, the importance of developing industry-specific products and the integration of the ASP delivery model as an up-front option during the sales cycle," writes AMRs Kate Murphy. "PeopleSoft has positioned the ASP business correctly: as a viable option for delivering PeopleSoft products and not a cheap, deal-saving alternative." AMR says 87 PeopleSoft clients be-came ASP customers while upgrading their software last year. The companys ASP partners tallied 93 new PeopleSoft customers, while PeopleSofts ASP business added another 25 customers.

Signs of Growth

The ASP market will grow faster than expected over the next several years, IDC says, reaching almost $24 billion by 2005. The research firm had previously predicted a market of $7.8 billion by 2004. The industry outpaced anticipated growth last year, hitting $996 million, almost half again as much as IDCs $633 million revenue estimate for 2000. IDC crowned USinternetworking the top ASP for last year, in terms of revenue and other factors, but warned that the rankings will likely look different this year.

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