Renting Applications: Is the Market Oversaturated?
CPAs and accounting professionals have heard much over the past few months about ASPs, or Application Service Providers, and the business of renting software applications that more closely fits their needs instead of buying entire packages.
Industry leaders like Microsoft are finding it difficult to come to terms with hosting options because projected revenues are difficult to determine based on the needs of small- to medium-sized businesses.
Recently, the GartnerGroup reported that the market will reap $2.7 billion this year and a projected $22.7 billion in the next three years, an annual revenue gain of 92 percent. However, with the glut of companies like Oracle, Merrill Lynch and others entering the ASP market and the doubt of hosting giants like Microsoft, the future is uncertain.