New Twist In the ASP Market: Single-App Companies
The growing application service provider market is about to getmore crowded. During the next two weeks, three companies will
launch: Intacct, MS2, and Mirronex. The newcomers, however, are
a different breed, each offering single applications without
customization or integration.
It remains to be seen whether the single-application approach
will be viable. While it may be suitable for businesses that
need just one application, most companies need more, and they
may not want to deal with several vendors to get a complete
ASP solution. "Ultimately, you're not going to want 27 different
companies supplying, maintaining, and managing your applications
over the Net," says Bill Martorelli, VP of E-services and
sourcing for Hurwitz Group.
Customers could struggle with integrating outsourced applications
unless single-application ASPs establish partnerships with other
vendors and outsourcers, analysts say. Or, new middlemen may emerge
to manage relationships between customers and the one-application
ASPs, integrating hosted applications or internal systems for them.
Intacct, which will launch this week, plans to form partnerships. It's
already considering a payroll-processing pact with Automatic Data
Processing Inc. to bolster its Internet accounting software. Other
single-application ASPs will go it alone, at least for now. Mirronex,
which also debuts this week, will reveal the first customer for its
MxConnect workflow-management software, the Limited Technology
Services, a division of The Limited Inc. The Limited has been using
the MxConnect application to improve response time from outside
consulting and staffing firms.
Meanwhile, MS2, launching next week, will offer online project
management. The software will let IT workers track project progress
and collaborate on problems online, using a password and ID, for
a flat monthly fee, depending on the number of users.
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