Technology Industry
Industry: Email Alert RSS FeedIBM-Corio deal makes ASPs ripe for picking
Telecommunications Mergers & Acquisitions, March, 2005 by Anonymous
SOFTWARE
Other ASPs are expected to look for buyers in the wake of $182 million buyout
IBM's proposed $182 million purchase of application service provider Corio Inc. could mean the days of standalone ASPs are numbered.
Full service IT vendors can combine software hosting with other services, such as integrating hosted software with on-site applications. Sales of software-on-demand from service companies such as IBM will grow at a compound annual rate of 40.6 percent through 2008, while sales from independent ASPs will grow 16.6 percent, IDC says.
More ASPs may look for buyers in the wake of the deal. USInternetworking Inc. eventually will go public or seek an acquisition deal, although no moves are imminent, says Andrew Stern, CEO of the privately backed...
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