Research by Gartner Group, a leading monitor of IT trends, predicts a sharp fall in the number of application service providers (ASPs) in the $3.6bn (£2.4bn) global market. The research company’s claims are given credence in the light of the recent failure of Pandesic, a major ASP brand in the US.
Gartner’s analysis identifies a shift towards developing software as a service, which has created a goldrush-style glut of vendors entering the market. There are currently about 500 ASPs, but Gartner anticipates that 60% of them will cease trading by the end of 2001, falling prey to bankruptcy, lack of venture capital, mergers and the forces of competition.
