"Currently in the region, 'ASP' is a dirty word. Many vendors talkabout their offerings and carefully avoid the word 'ASP', even thoughthey are offering an application delivered across a network using arental-pricing model. We are at the bottom of the hype cycle. We arestill trying to reach the state where people begin to realise thenegative side is untrue, and begin to see how the business model fitsinto their world," says Jester.

Wealth of Experience

The ASP and MSP market consists of both big and establishedinternational outsourcing companies such as EDS Corp. and IBMIBM GlobalServices, as well smaller local and regional players. Alles zu IBM auf CIO.de

One of the few regional players that has survived the ASPdisillusionment is Singapore-based CrimsonLogic (formerly known asSingapore Network Services or SNS), which has been providing trade andlogistics services since 1993. SNS was synonymous with EDI andTradeNet, the online community for exporters and importers to submittrade transaction papers electronically. With a total of 7,000customers from the trade and logistics, government, legal andhealthcare sectors - chalking up millions of transactions everymonth - it has achieved the economies of scale necessary for an ASP tooperate viably.

CrimsonLogic's CEO V. Mathivanan says the company's basic businessproposition is to operate like a megamart that offers its customersvolume discounts. "We build a data centre and invest in the people, avery heavy investment that is mitigated by each customer taking asmall share of the cost. If they go it alone, they would have to forkout half or a quarter of the investment."