ASP Consortium Membership Soars - InformationWeek

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ASP Consortium Membership Soars

The ASP Industry Consortium today disclosed that more than 30 new members have joined the organization in the past month. Traver Gruen-Kennedy, chairman of the organization, said the group has about 59 members to date since its launch in May.

Gruen-Kennedy says it will take another three to five years before the application-service-provider market is ready for large enterprise markets. "Small to medium-sized businesses are the sweet-spot for ASPs right now," he says. Those companies are faced with an IT labor shortage, tighter budgets, and smaller IT departments, Gruen-Kennedy says. ASPs offer a viable alternative to implementing expensive enterprise resource planning, human resources, and customer relationship management products, and can save companies money on hosted E-mail and messaging.

Next week, the ASP board members will meet to set up working committees. The committees will attempt to establish technical specifications and best-practices policies that the consortium hopes to present to the International Standards Organization by year's end.

Until standards are set, IT managers may think twice before recommending an ASP. Without third-party recognition of ASP standards, many IT managers won't want to risk their jobs or their companies by going with an ASP, Gruen-Kennedy says.

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