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IDC: Vast Partnering Opportunity in ASP Market

A new study by industry analyst firm IDC shows enormous opportunity for partnering with ASPs. According to IDC, over 80 percent of ASPs are actively seeking software vendor partners, and a significant number are also seeking service, resale, telecommunication, ISP, and hardware vendor partners.

The study also finds the specific partnering needs of ASPs differ significantly from any other partner segment, and programs designed to meet the needs of other partner types are unlikely to satisfy the particular requirements and expectations of ASPs. For example, sales training was found to have a statistically significant correlation with an ASP's intention to grow its business with the vendor in the futre, but it was not statistically significant for any traditional partner segments,

"ASPs are seeking partnerships with a variety of technology product and service firms, with a particularly strong emphasis on software vendors," said Stephen Graham, vice president of IDC's (www.idc.com) Global Software Partnering and Alliances research. "By understanding the ASPs' business needs, vendors can develop a more attractive value proposition and ensure they are easy to do business with."

IDC predicts spending on ASP services will grow to $7.7 billion in 2004, from $300 million in 1999. The likely growth of the market has the potential to displace ISVs that fail to capitalize on the change.

The study, Partnering with ASPs: An IDC Priority Partners Study, explores issues relevant to partnering with ASPs. The report is written for vendors wishing to extend ASPs as an additional channel and provides the information and insight required to develop effective programs and compelling value propositions. - Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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