Future of ASPs Looks Good

For the past year, reports have circulated across the accounting profession that the use of Application Service Providers or ASPs will be 'red hot' as CPAs and their clients begin to adopt rentable applications based on the ASP model.

Now, a new report from IDC confirms that the ASP marketplace is gaining momentum, and has put itself on the line by forecasting that the industry will be worth $7.8 billion by 2004. That's up significantly from $00 million spent in 1999.

Wayne Harding, director of Business Development for cpa2biz says, 'As the ASP market continues to fluctuate, there will be an increased reliance on Quality of Service issues--a real OPPORTUNITY for CPAs.'

The primary reason for the predicted surge is attributed to a lack of IT employees, but also includes a lower cost and access to technology, simpler IT budgets and a longer lead-time to market ASPs.

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