Report

December 1999

Sizing App Hosting

Stacie Kilgore 		Incomplete supplier offerings and user confusion have stalled the apps hosting market. But new delivery models will force a market restructuring, driving the market to $11.3 billion by 2003.
by Stacie Kilgore with Brendan Hannigan, Liz Leyne, Andrew Reinhard

INTERVIEWS
  • Seventy-eight percent of businesses don't outsource now.
  • Fifty-seven percent of small to medium-sized firms will consider it in the future.
ANALYSIS
  • Apps hosting gets 22% of all apps purchases in 2003.
  • eCommerce and CRM apps take 64% of hosting revenues.
  • New network-centric apps leaders emerge.
ACTION
  • Firms must consider apps hosting for every app project.
  • Users need a clear exit strategy before they begin hosting.
WHAT IT MEANS
  • Skills draught drives large companies to host apps in 2004.
  • Sun benefits as apps hosting drives rise in big-box sales.
 
Figures & Data
  • Figure 1.  Users Are Lukewarm About Apps Hosting
  • Figure 2.  Total Applications Revenue: Hosted And Purchased In-house
  • Figure 3.  Users Host Outward-Facing Apps
  • Figure 4.  Small And Medium-Sized Businesses Dominate Apps Hosting
  • Figure 5.  ASPs Become The Channel For ISVs And Network Service Providers
  • Figure 6.  Apps Hosting Drives The Emergence Of New Apps Leaders
  • Figure 7.  Four Classes Of ASPs Develop
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
 
GRAPEVINE
  • SAP's Hasso Plattner is skeptical about software as a service.
  • A chilling supply chain.
  • Hopefully, Oracle consultants have a little more personality.

Special Features

4 Forecasts

Research on future technology trends or innovation

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Ratings and Comments
NOT YET RATED
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