May 15, 2001 – Applications service providers can come up winners in the wireless marketplace if they properly position their offerings, according to findings from International Data Corp.

Specifically, IDC said that of 361 U.S. and European end users it recently canvassed, 61 percent said they would consider using a wireless ASP, a third-party operator that manages and distributes software services and solutions from a central data center.

"Wireless applications present a very real and viable opportunity for ASPs, but it's essential that while trying to seize this opportunity, ASPs don't lose sight of their current business and the customers they already are serving,'' said Jessica Goepfert, senior analyst with IDC's application service providers research program.

According to IDC's survey, end users have strong ideas about the types of applications they expect to be available on a wireless solution. Topping the "expectations" list: email, cited by almost 80 percent of respondents. Customer service and support, unified messaging, and sales force automation applications were also rated highly.

"Before throwing resources at developing wireless capabilities, ASPs should consider the application set that they currently offer,'' Goepfert said. "If they provide the applications that topped the list of expected wireless applications, then they should probably add wireless to their growing to-do list."

The survey – compiled in a report called "Wireless ASPs: Where's the Demand?" – also revealed that integration is an important factor. Approximately 53 percent of respondents in IDC's survey for the report said they would be likely to use an external service provider to integrate wireless applications with their existing IT systems. Another 80 percent indicated they prefer an integrated wireless solution to a standalone system.

"ASPs that don't have the integration expertise in-house should seek out partners to acquire these skills so they can deliver more value to their customers," Goepfert said.