Beware: Its a Retail Jungle Out There | eWeek

Beware: Its a Retail Jungle Out There

Écrit par
eWEEK EDITORS
eWEEK EDITORS
Feb 19, 2001
2 minute read
eWeek Le contenu et les recommandations de produits sont indépendants de la rédaction. Nous pouvons gagner de l'argent lorsque vous cliquez sur des liens vers nos partenaires. En savoir plus

Application service providers didnt feel a lot of love last week. No flowers. No chocolate. In fact, one research firm released a forecast predicting that 60 percent of existing ASPs will be history by next year.

The study by AMR Research may be unsettling, but one way service providers could stay alive is through specialization, a method of survival being used by many small retailers faced with competition from Goliath-like chains.

In this sector, Abhijeet Rane, director of product planning for ASP vJungle Inc., sees parallels between brick-and-mortar retailing wars and life in the ASP trenches.

“A lot of ASPs are trying to sell directly to end customers, and theyre having problems,” says Rane. “The Wal-Marts of the world come out on top.”

Rane believes vJungle, a year-old company founded by former Microsoft engineer Deepak Amin, has one way for ASPs to survive this form of e-commerce Darwinism. The key is finding a way to “leverage the existing channel” to create individualized portfolios of ASP services, Rane says.

VJungles strategy is to partner with well-branded names, including Hewlett-Packard, Office Depot and the U.S. Small Business Administration. Amin doesnt care that the e-business services being offered by well-known players are being provided by third-party ASPs delivered over vJungles OpenEX platform, says Rane.

VJungle is not alone. Its main rival, Rivio, has rolled out co-branded versions of the Microsoft bCentral services .

Specialization is key for CoreHarbor, an ASP that hosts Ariba e-procurement software for midtier companies.

“Whats different about us is that other ASPs have 10 to 12 applications [for rent],” says CoreHarbor CEO Jay Chaudhry. “If you do that, you become a generalist. Were the heart surgeons when it comes to e-procurement …. We do Ariba day and night, so we really know how to support it.”

CoreHarbor, founded in late 1999, just added Sunoco to its customer list.

Focusing on a core competency seems to work for management service providers. Take SilverBack Technologies. The nearly two-year-old company has no desire to supplant a customers IT staff, says SilverBack CTO Robert Klotz. “We want to do one thing: Manage the customers infrastructure,” he says.

Instead of connecting customers to expensive network operations centers, SilverBacks InfoCare product uses a small appliance running Linux that monitors the infrastructure.

“There are a lot of competitors in our space that try to do everything,” says Klotz. “Theyre kind of all over the map.”

The real upshot in the ASP space will be who is left standing.

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Propriété de TechnologyAdvice. © 2026 TechnologyAdvice. Tous droits réservés

Divulgation publicitaire : Certains des produits qui apparaissent sur ce site proviennent d'entreprises dont TechnologyAdvice reçoit une compensation. Cette compensation peut influencer la façon dont les produits apparaissent sur ce site, notamment l'ordre dans lequel ils apparaissent. TechnologyAdvice n'inclut pas toutes les entreprises ou tous les types de produits disponibles sur le marché.