Nov, 2001 : Infonetics Says App Hosting to Grow 288% from 2001-2005

📅 November 6, 2001 - US/Canada application hosting service expenditures willgrow 288%, from $1.6 billion to $6.2 billion between 2001 and 2005, andworldwide expenditures will grow 371%, according to Infonetics Research's (infonetics.com) latest study, "User Plans for Application Hosting Services, US/Canada 2001."

"Medium and large organizations are keen on hosting services for Web, e-commerce, extranets, and some niche applications," said analyst Jeff Wilson, Infonetics Research's executive director. "Small organizationslook to service providers to host e-mail and Web applications, and they findthat hosting enables them to use applications previously available to larger organizations, such as ERP, high-end groupware, videoconferencing, andother business applications that are currently too expensive to deploy on their own."
Sample data from the study, which is based on interviews with 240 small, medium, and large organizations:
68% of respondents name increased reliability of applications as a key driver for adopting application hosting servicesLack of security is named as a key barrier to adoption by 65% of respondents75% of respondents plan to use IPSec VPNs for secure access tohosted applications by 2003
This 133-page study features 89 exhibits and includes a 5-year worldwideforecast of end-user expenditures through 2005 for application hostingservices, broken out by US/Canada vs ROW; the US/Canada forecast is brokenout by small vs medium vs large organizations. It also includes:
Drivers and barriers for application hosting servicesApplications outsourcedASP selection criteriaKey service featuresSLA and QoS requirementsHosting services vs co-locationBandwidth requirementsSecurity requirementsManagement issuesExpenditures

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