Where ASPs Are Now
The ASP industry has already started its consolidation phase. A small percentage of new players is still entering the field but mostly in specialized areas. Although there are few really big players still on the sidelines, most of the major telcos, software and hardware companies, integrators, and even VARs have acquired partners and launched ASP programs.
As consolidation continues, ASPs will also start to segment. Major ASP operations will dominate certain major applications (ERP, e-business, CRM...), markets (Finance, Manufacturing, Health Care...), and even market tiers (Global 2000, SMBs, dotcoms); and others will follow with much smaller market share. And large players will gobble smaller ones that have run out of capital; mid-range ones will merge to conserve funds or combine complementary technologies and cross-sell into each other's customer bases.