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How ASP Alliances Can Benefit Your E-Business Strategy

Clearly ASP acquisitions can pay dividends well into the future with enhanced infrastructures. The continued media and analyst coverage of the ASP model is also driving acquisitions at a quick pace, despite fluctuations in capital markets. With all the change that's occurring on nearly a weekly basis, the implications for your selection of an ASP based on its partnership levels can be perplexing. Here are several factors to keep in mind when working with a service provider that's in the midst of being acquired or acquiring companies:

    1. Find out the nature of the transactions by looking into S1s and annual reports. This sounds almost too focused on the health of the target company, but an S1 can tell you a lot about the company.

    2. Determine whether the acquisitions they're making are consistent with your roadmap of needs. This is fundamental to the direction of your e-business strategy, so make sure that the acquisitions are going to provide the necessary applications that will give you flexibility in fulfilling your e-business objectives.

    3. Determine whether the support organization you rely on duplicates tasks in other areas of the partnering company. As more companies are driving for profitability, they're removing their professional services divisions and turning that task over to system integrators. Be sure to check on the status of your relationship with your ASP as a partnership or even an acquisition is completed, as the terms of how service is handled have definite implications for you and the level of responsiveness you'll get.

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