1. APPLICATION SERVICE PROVIDER (ASP) MCP-1763
HOSTING SERVICES - A GLOBAL STRATEGIC BUSINESS REPORT
CONTENTS
I. INTRODUCTION, METHODOLOGY & 3. Market Trends ............................................................ II-4
PRODUCT DEFINITIONS Growing Market Awareness...................................................II-4
M&A Activity Continues Unabated .......................................II-4
Study Reliability and Reporting Limitations ........................... I-1 Differentiation – the Buzz Word ............................................II-4
Disclaimers ............................................................................. I-2 Integration with Legacy Systems Gains Prominence..............II-4
Data Interpretation & Reporting Level.................................... I-2 ASPs for Insurance Sector Still in Nascent Stage...................II-4
Quantitative Techniques & Analytics .................................. I-2
Product Definitions and Scope of Study.................................. I-3 4. Product Overview ....................................................... II-5
Application service provider (ASP) Hosting Introduction............................................................................II-5
Services ............................................................................ I-3 Classification of ASPs by Area of Focus................................II-5
Classification of ASPs by Area of Focus................................. I-3 Specialist ASPs...................................................................II-5
Specialist ASPs.................................................................... I-3 Regional/Local ASPs ..........................................................II-5
Regional/Local ASPs........................................................... I-3 Enterprise ASPs ..................................................................II-5
Enterprise ASPs................................................................... I-3 Volume Business ASPs.......................................................II-5
Volume Business ASPs ....................................................... I-4 Vertical Market ASPs .........................................................II-5
Vertical Market ASPs .......................................................... I-4 Classification of ASPs by Applications and
Classification of ASPs by Applications and Services Provided ...............................................................II-5
Services Provided ................................................................ I-4 Applications........................................................................II-6
Applications......................................................................... I-4 Vertical Applications.......................................................II-6
Vertical Applications........................................................ I-4 Analytical Applications ...................................................II-6
Analytical Applications.................................................... I-4 Personal Applications......................................................II-6
Personal Applications....................................................... I-4 CRM Applications...........................................................II-6
CRM Applications ........................................................... I-4 ERM Applications...........................................................II-6
ERM Applications............................................................ I-4 Collaborative Applications ..............................................II-6
Collaborative Applications............................................... I-4 Services...............................................................................II-6
Services ............................................................................... I-5 Core Services ..................................................................II-6
Core Services ................................................................... I-5 Managed Services ...........................................................II-6
Managed Services ............................................................ I-5 Extended Services ...........................................................II-7
Extended Services ............................................................ I-5 Components of ASP ...............................................................II-7
ASP Players............................................................................II-7
II. EXECUTIVE SUMMARY Advantages of ASP Model .....................................................II-7
Cost Benefits.......................................................................II-7
Swift Implementation..........................................................II-7
1. Industry Overview ...................................................... II-1
Broad Range of Applications..............................................II-7
ASP Hosting Services – On a Fast Track ............................... II-1 Alleviates Dearth of Talented IT Professionals...................II-7
Growth Factors....................................................................... II-1 Service Level Agreement in Brief ..........................................II-7
Focus on Profitability ......................................................... II-1
Large Companies as ASP Customers.................................. II-1
5. Product Innovations/Introductions............................ II-8
Partnerships ........................................................................ II-1
Inhibiting Factors ................................................................... II-1 Oracle Unveils Oracle® Mobile Sales Assistant ....................II-8
Consolidation...................................................................... II-1 Intermedia.NET Expands Hosted Exchange Storage..............II-8
Undecided Channels ........................................................... II-2 Verio Inc. Introduces New Hosting Solutions ........................II-8
Undefined Future Strategy.................................................. II-2 GoDaddy.com Strengthens Web Hosting Security.................II-9
Spry Hosting Launches advanced VPS Hosting
Services US .........................................................................II-9
2. ASP Hosting Services by Application Type – HostChart.com Launches HostAssist .....................................II-9
An Analysis .................................................................. II-3 Seamless Wi-Fi Launches Alpha Internet...............................II-9
E-Commerce – the Largest ASP Application ......................... II-3 nuWebHosts.com Introduces Complete Hosting Service .......II-9
CRM and Industry Specific Applications Offer AdventNet Launches Web-based Application
Great Potential .................................................................... II-3 Monitoring Tool..................................................................II-9
Table 1: Global ASP Hosting Services Market by
Application Type: Percentage Breakdown of Value 6. Recent Industry Activity........................................... II-10
Sales for CRM (Customer Relationship Management), Sandata Acquires Major Portion of TeleTimecard(TM)
ERP (Enterprise Resource Planning), E-Commerce, LLC ..................................................................................II-10
Collaborative, Financial, Vertical/Industry Digital Dispatch to Acquire MobiSoft OY ...........................II-10
Specific, and Others (includes corresponding IBM Pockets Encentuate ......................................................II-10
Graph/Chart) ......................................................................II-3 Pfizer Switzerland Gains Access to Ariba Sourcing™ .........II-11
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2. APPLICATION SERVICE PROVIDER (ASP) MCP-1763
HOSTING SERVICES - A GLOBAL STRATEGIC BUSINESS REPORT
CONTENTS
Ariba to Service Mid Management Companies.................... II-11 Equinix Purchases New Data Center ....................................II-20
Intelligroup Sings a Partnership Agreement with iStreet Interoute Buys European Operations of VIA Europe ...........II-20
Solutions........................................................................... II-11 Peer 1 Takes Over Dedicated Server Assets of Interland.....II-20
AT&T Inc. Inks Marketing Pact with SAP America Inc ...... II-11 Microsoft Purchases Teleo ...................................................II-20
USi and Webmetrics Join Forces to Launch E-Commerce HostMySite.com and Auersoft Join Hands...........................II-20
Performance Analysis Package......................................... II-12 Cisco Systems Takes Over Sheer Networks .........................II-20
OntarioMD Selects the New ASP Version of Practice OneNeck Integrates with Hosted Solutions ..........................II-21
Solutions........................................................................... II-12 Destra Takes Over GPM Internet .........................................II-21
USi Acquires Daniel IT........................................................ II-13 Apollo Hosting Unites with Tucows ....................................II-21
Nightingale to Acquire VantageMed.................................... II-13 Destra and Ansearch Join Hands ..........................................II-21
Ariba Acquires Procuri......................................................... II-13
CheetahMail Purchases Harvest Solutions ...........................II-21
EDS Inaugurates Wuhan Global Service Centre (GSC) ....... II-13
WebServe Buys EZ Host Provider .......................................II-21
AboveNet Sells its Data Center Facility in
Ensim Acquires TeleGea Inc................................................II-21
San Jose to DataPipe ........................................................ II-13
Cisco Systems Buys FineGround Networks .........................II-21
Web.com Acquires WebSource Media................................. II-14
Globat.com Takes Over Entity Communications .................II-22
The Planet and EV1 Join Hands........................................... II-14
TelCove and High Density Hosting Join Hands ................... II-14 Hostway Purchases Server-Service GmbH Germany ...........II-22
FlatBurger Signs Agreement with SWsoft ........................... II-14 America Online, Inc. and Doubleclick Join Hands...............II-22
Little Star Web Networks Takes Over cPanelDemos.com ... II-14 Inkra Inks Pact with Sententia ..............................................II-22
X1Services.com Buys MaximumVPS.................................. II-14 CoConnect Acquires EonDeck.com and Rndtuit.com ..........II-22
IceWEB Purchases PatriotNet.............................................. II-15 LinuxForce Takes Over Cyber Loft......................................II-22
Microsoft and Interland Signs Marketing Deal .................... II-15 Fusepoint Purchases Worldwide Online...............................II-22
Eros Enterprises to Buy Talex Studios ................................. II-15 Tornado Unites with Novara I.T Europe ..............................II-23
Othello Technology Takes Over BeamHost ......................... II-15 CIQ Inks Pact with AT&T ...................................................II-23
Spiderhost Acquires Hosting Accounts of Zynergy ............. II-15 DedicatedCentral and Urchin Software Join Hands..............II-23
TITAN Buys Titanium Consulting Group............................ II-15 TCS and SAP Join Hands in South Africa
Sitestar Takes Over Netrover Canada................................... II-15 South Africa......................................................................II-23
Dotster Signs Agreement with Thawte................................. II-15 Equinix Inc. Acquires Data Center of AboveNet
Hosting.com Purchases Data Center Facility ....................... II-16 Communication.................................................................II-23
Interland Acquires Web.com................................................ II-16 H-Quotient Enhances Application Service
EarthLink Acquires New Edge Networks ............................ II-16 Provider capacity ..............................................................II-23
Cmather Launches Web Hosting Services............................ II-16
EDS Acquires Majority Stake in MphasiS India .................. II-16 7. Focus on Select Global Players................................. II-24
Eastman Signs Agreement with Intelligroup ........................ II-16 Ariba, Inc. (US)....................................................................II-24
Intelligroup Partners with Royal Greenland ......................... II-17 Electronic Data Systems Corporation (US) ..........................II-24
IBM Purchases Internet Security Systems............................ II-17 International Business Machines Corporation (US)..............II-25
IBM Takes Over FileNet...................................................... II-17 Intelligroup, Inc. (USA) .......................................................II-25
IBM Buys Webify................................................................ II-17 Jamcracker, Inc. (US)...........................................................II-26
TCS Establishes BFS Solution Center India......................... II-17 Oracle Corporation (US) ......................................................II-26
DemoWolf Signs Partnership Agreement with Tata Consultancy Services Ltd (India) .................................II-26
ResellersToday ................................................................. II-17 USinternetworking, Inc. (US)...............................................II-27
RCM Technologies, Inc. Acquires Soltre Technology Inc...... II-17
IBM Takes Over Corio......................................................... II-18
Sun Microsystems Buys SevenSpace ................................... II-18
8. Global Market Perspective .............................................II-28
SunGard Purchases Inflow, Inc. ........................................... II-18 Table 2: World Recent Past, Current & Future Analysis for
Network Solutions Purchases MonsterCommerce................ II-18 Application Service Provider (ASP) Hosting Services by
Tucows Buys Hosted Messaging Assets of Critical Path ..... II-18 Geographic Region – US, Canada, Japan, Europe,
LocalNet Takes Over CoreComm Customers ...................... II-18 Asia Pacific and Rest of World Independently Analyzed
Joyent Takes Over TextDrive............................................... II-19 with Annual Sales Figures in US$ Million for
Interland Integrates with Ambassador Yellow Pages ........... II-19 Years 2000 through 2010 (includes corresponding
Claranet Purchases Artful France......................................... II-19 Graph/Chart)........................................................................II-28
Aplus.Net and Comodo Join Hands ..................................... II-19 Table 3: World Long-term Projections for Application
Dotster Signs Partnership Agreement with Akmin............... II-19 Service Provider (ASP) Hosting Services by Geographic
Peer 1 Network Integrates with Swsoft ................................ II-19 Region – US, Canada, Japan, Europe, Asia Pacific and
Livedoor Takes Over ClickDiario ........................................ II-19 Rest of World Independently Analyzed with Annual Sales
Hostway Signs Partnership Agreement with Intellext .......... II-19 Figures in US$ Million for Years 2011 through 2015
MCI Acquires Totality ......................................................... II-20 (includes corresponding Graph/Chart) ................................II-29
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3. APPLICATION SERVICE PROVIDER (ASP) MCP-1763
HOSTING SERVICES - A GLOBAL STRATEGIC BUSINESS REPORT
CONTENTS
Table 4: World 10-Year Perspective for Application Service B. Market Analytics ........................................................... III-19
Provider (ASP) Hosting Services by Geographic Region -
Percentage Breakdown of Dollar Sales for US, Canada, Table 9: Japanese Recent Past, Current & Future
Japan, Europe, Asia Pacific and Rest of World Markets Analysis for Application Service Provider (ASP) Hosting
for Years 2003, 2008 & 2012 (includes corresponding Services - Annual Sales Figures in US$ Million for
Graph/Chart) ....................................................................... II-30 Years 2000 through 2010 (includes corresponding
Graph/Chart)....................................................................III-19
Table 10: Japanese Long-term Projections for
III. MARKET Application Service Provider (ASP) Hosting Services -
Annual Sales Figures in US$ Million for
1. The United States ....................................................... III-1 Years 2011 through 2015 (includes corresponding
A. Market Analysis ...............................................................III-1 Graph/Chart)............................................................... III-19
Recent Past, Current and Future Analysis ......................III-1
US Leads World ASP Market ........................................III-1 4. Europe....................................................................... III-20
Differentiation – the Buzz Word ....................................III-1 A. Market Analysis ............................................................ III-20
Product Introductions .....................................................III-1 Recent Past, Current and Future Analysis ................... III-20
Recent Industry Activity ................................................III-2 Recent Industry Activity.............................................. III-20
Key Players ..................................................................III-12 B. Market Analytics ........................................................... III-21
B. Market Analytics ............................................................III-15 Table 11: European Recent Past, Current & Future
Analysis for Application Service Provider (ASP) Hosting
Table 5: US Recent Past, Current & Future Analysis Services by Geographic Region – France, Germany,
for Application Service Provider (ASP) Hosting Italy, UK, and Rest of Europe Markets Independently
Services - Annual Sales Figures in US$ Million for Analyzed with Annual Sales Figures in US$ Million
Years 2000 through 2010 (includes corresponding for Years 2000 through 2010 (includes
Graph/Chart)................................................................III-15 corresponding Graph/Chart)....................................... III-21
Table 6: US Long-term Projections for Application Table 12: European Long-term Projections for
Service Provider (ASP) Hosting Services - Annual Application Service Provider (ASP) Hosting Services
Sales Figures in US$ Million for Years 2011 through by Geographic Region – France, Germany, Italy,
2015 (includes corresponding Graph/Chart) ...............III-15 UK, and Rest of Europe Markets Independently
Analyzed with Annual Sales Figures in US$ Million
for Years 2011 through 2015 (includes
2. Canada ...................................................................... III-16 corresponding Graph/Chart)....................................... III-22
A. Market Analysis .............................................................III-16
Table 13: European 10-Year Perspective for
Recent Past, Current and Future Analysis ....................III-16
Application Service Provider (ASP) Hosting Services
Recent Industry Activity ..............................................III-16
by Geographic Region - Percentage Breakdown of
B. Market Analytics ............................................................III-17 Dollar Sales for France, Germany, Italy, the
UK, and Rest of Europe for Years 2003,
Table 7: Canadian Recent Past, Current & Future 2008, and 2012 (includes corresponding
Analysis for Application Service Provider (ASP) Graph/Chart)............................................................... III-22
Hosting Services - Annual Sales Figures in
US$ Million for Years 2000 through 2010
(includes corresponding Graph/Chart)........................... III-17
4a. France ...................................................................... III-23
A. Market Analysis ............................................................ III-23
Table 8: Canadian Long-term Projections for Recent Past, Current and Future Analysis ................... III-23
Application Service Provider (ASP) Hosting Services - Recent Industry Activity.............................................. III-23
Annual Sales Figures in US$ Million for B. Market Analytics ........................................................... III-23
Years 2011 through 2015 (includes corresponding
Graph/Chart) ...............................................................III-17 Table 14: French Recent Past, Current & Future
Analysis for Application Service Provider (ASP)
Hosting Services - Annual Sales Figures in
3. Japan ......................................................................... III-18 US$ Million for Years 2000 through 2010
A. Market Analysis .............................................................III-18 (includes corresponding Graph/Chart) ....................... III-23
Recent Past, Current and Future Analysis ....................III-18 Table 15: French Long-term Projections for
Japanese ASP Market: An Overview ...........................III-18 Application Service Provider (ASP) Hosting
Driving and Inhibiting Factors of Japanese Services - Annual Sales Figures in US$ Million
ASP Market ..............................................................III-18 for Years 2011 through 2015 (includes
Leading ASP Players in the Market..............................III-18 corresponding Graph/Chart)....................................... III-24
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4. APPLICATION SERVICE PROVIDER (ASP) MCP-1763
HOSTING SERVICES - A GLOBAL STRATEGIC BUSINESS REPORT
CONTENTS
4b. Germany .................................................................. III-25 Table 23: Rest of Europe Long-term Projections for
A. Market Analysis .............................................................III-25 Application Service Provider (ASP) Hosting Services -
Annual Sales Figures in US$ Million for Years 2011
Recent Past, Current and Future Analysis ....................III-25
through 2015 (includes corresponding
Recent Industry Activity ..............................................III-25 Graph/Chart)............................................................... III-32
B. Market Analytics ............................................................III-25
Table 16: German Recent Past, Current & Future 5. Asia Pacific ............................................................... III-33
Analysis for Application Service Provider (ASP) Market Analysis.............................................................. III-33
Hosting Services - Annual Sales Figures in US$ Million
for Years 2000 through 2010 (includes Table 24: Asia Pacific Recent Past, Current & Future
corresponding Graph/Chart)........................................III-25 Analysis for Application Service Provider (ASP) Hosting
Services by Geographic Region – China, Hong Kong,
Table 17: German Long-term Projections for and Rest of Asia Pacific Markets Independently
Application Service Provider (ASP) Hosting Services - Analyzed with Annual Sales Figures in US$ Million
Annual Sales Figures in US$ Million for for Years 2000 through 2010 (includes
Years 2011 through 2015 (includes corresponding corresponding Graph/Chart)....................................... III-33
Graph/Chart) ...............................................................III-26
Table 25: Asia Pacific Long-term Projections for
4c. Italy .......................................................................... III-27 Application Service Provider (ASP) Hosting Services
Market Analysis...............................................................III-27 by Geographic Region – China, Hong Kong, and
Rest of Asia Pacific Markets Independently Analyzed
Recent Past, Current and Future Analysis ....................III-27 with Annual Sales Figures in US$ Million for
Table 18: Italian Recent Past, Current & Future Years 2011 through 2015 (includes corresponding
Analysis for Application Service Provider (ASP) Graph/Chart)............................................................... III-34
Hosting Services - Annual Sales Figures in US$ Million
Table 26: Asia Pacific 10-Year Perspective for
for Years 2000 through 2010 (includes
Application Service Provider (ASP) Hosting Services
corresponding Graph/Chart)........................................III-27
by Geographic Region - Percentage Breakdown of
Table 19: Italian Long-term Projections for Dollar Sales for China, Hong Kong, and Rest of
Application Service Provider (ASP) Hosting Services - Asia Pacific for Years 2003, 2008, and 2012
Annual Sales Figures in US$ Million for (includes corresponding Graph/Chart) ....................... III-34
Years 2011 through 2015 (includes corresponding
Graph/Chart) ...............................................................III-28 5a. China........................................................................ III-35
A. Market Analysis ............................................................ III-35
4d. The United Kingdom .............................................. III-29 Recent Past, Current and Future Analysis ................... III-35
Market Analysis...............................................................III-29 ASP market in China: A Picturesque........................... III-35
Recent Past, Current and Future Analysis ....................III-29 ERP – the Leading ASP Application ....................... III-35
Recent Industry Activity.............................................. III-35
Table 20: UK Recent Past, Current & Future Analysis
B. Market Analytics ........................................................... III-36
for Application Service Provider (ASP) Hosting Services -
Annual Sales Figures in US$ Million for Years 2000 Table 27: Chinese Recent Past, Current & Future
through 2010 (includes corresponding Analysis for Application Service Provider (ASP)
Graph/Chart) ...............................................................III-29 Hosting Services - Annual Sales Figures in US$
Table 21: UK Long-term Projections for Application Million for Years 2000 through 2010 (includes
Service Provider (ASP) Hosting Services - Annual corresponding Graph/Chart)....................................... III-36
Sales Figures in US$ Million for Years 2011 Table 28: Chinese Long-term Projections for
through 2015 (includes corresponding Application Service Provider (ASP) Hosting Services -
Graph/Chart) ...............................................................III-30 Annual Sales Figures in US$ Million for
Years 2011 through 2015 (includes corresponding
4e. Rest of Europe ......................................................... III-31 Graph/Chart)............................................................... III-36
Market Analysis...............................................................III-31
Recent Past, Current and Future Analysis ....................III-31 5b. Hong Kong............................................................... III-37
A. Market Analysis ............................................................ III-37
Table 22: Rest of Europe Recent Past, Current &
Future Analysis for Application Service Provider Recent Past, Current and Future Analysis ................... III-37
(ASP) Hosting Services - Annual Sales Figures in A Scenario of Hong Kong ASP Market....................... III-37
US$ Million for Years 2000 through 2010 Driving and Inhibiting Factors..................................... III-37
(includes corresponding Graph/Chart) ........................III-31 Market Leaders............................................................ III-37
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5. APPLICATION SERVICE PROVIDER (ASP) MCP-1763
HOSTING SERVICES - A GLOBAL STRATEGIC BUSINESS REPORT
CONTENTS
B. Market Analytics ............................................................III-38 Table 32: Rest of Asia-Pacific Long-term Projections for
Application Service Provider (ASP) Hosting Services -
Table 29: Hong Kong Recent Past, Current & Future
Analysis for Application Service Provider (ASP) Hosting Annual Sales Figures in US$ Million for Years 2011
Services - Annual Sales Figures in US$ Million for through 2015 (includes corresponding
Graph/Chart)............................................................... III-41
Years 2000 through 2010 (includes corresponding
Graph/Chart) ...............................................................III-38
Table 30: Hong Kong Long-term Projections for Application 6. Rest of World............................................................ III-42
Service Provider (ASP) Hosting Services - Annual Sales A. Market Analysis ............................................................ III-42
Figures in US$ Million for Years 2011 through 2015
(includes corresponding Graph/Chart) ........................III-38 Recent Past, Current and Future Analysis ................... III-42
Recent Industry Activity.............................................. III-42
5c. Rest of Asia Pacific.................................................. III-39 B. Market Analytics ........................................................... III-42
A. Market Analysis .............................................................III-39
Table 33: Rest of World Recent Past, Current &
Recent Past, Current and Future Analysis ....................III-39
Future Analysis for Application Service Provider
Singapore, South Korea, and Taiwan to Lead Market ..... III-39
(ASP) Hosting Services - Annual Sales Figures
Recent Industry Activity ..............................................III-39
in US$ Million for Years 2000 through 2010
Tata Consultancy Services Ltd (India) –
(includes corresponding Graph/Chart) ....................... III-42
A Key Player ............................................................III-39
B. Market Analytics ............................................................III-40 Table 34: Rest of World Long-term Projections
Table 31: Rest of Asia Pacific Recent Past, Current & for Application Service Provider (ASP)
Future Analysis for Application Service Provider (ASP) Hosting Services - Annual Sales Figures
Hosting Services - Annual Sales Figures in US$ Million in US$ Million for Years 2011 through
for Years 2000 through 2010 (includes 2015 (includes corresponding
corresponding Graph/Chart)........................................III-40 Graph/Chart)............................................................... III-43
IV. COMPETITIVE LANDSCAPE
© Global Industry Analysts, Inc., April 2008 Page 5