Outsourcing
Rising Above Risks
The fine differences between ASPs and MSPs aside, outsourcing to thesevendors and other xSPs, is going to be an inevitable part of thecorporate IT services scene during these difficult times as companiesshun capital equipment purchases.
But if you are thinking of using ASPs and MSPs to take some of theload off IT, don't expect a problem-free process when choosing theright vendor, as the vendor market is still in a state of flux and thelandscape is far from stable.
"There are many vendors today who will not be dependable for the longterm. The market has not matured, and there will be many mergers andacquisitions in the next few years till the industry reaches a levelof maturity," says Jester.
The vendor community has also not perfected the art of sellingmass-customised solutions. "Current service providers have not fullydeveloped and marketed mass-customised solutions. This is not atechnological issue but a business and marketing one. It takes time toround up an offering and offer it effectively to a large market,"Jester says.
It doesn't help that ASPs andMSPs suffer negative connotations caused by their predecessors whofolded in droves during the dotcom days. These companies went bustbecause they made two fatal missteps: they did not have the rightbusiness models and could not survive when funding dried up; they werealso not well known, trusted brand names.