IDC Study Finds Partnering Needs Very High in ASP Market

Jim Martin

In its latest report on the ASP market, IDC examines partnering and finds tremendous opportunity in this area, with more than 80 percent of ASPs actively seeking software vendor partners, many of whom are AS/400 relevant.

According to the report, “Partnering with ASP--An IDC Priority Partners Study,” a large number of ASPs are also actively seeking partners in areas such as service, resale, telecommunication, ISPs, and hardware vendors.

"ASPs are seeking partnerships with a variety of technology product and service firms, with a particularly strong emphasis on software vendors,” says Stephen Graham, VP of IDC's Global Software Partnering and Alliances research. “By understanding the ASPs' business needs, vendors can develop a more attractive value proposition and ensure they are easy to do business with."

Because the ASP model is complex and relatively new, the study says partnering in the ASP market is different from other segments and that programs designed for other partnering areas will not usually fit the needs of ASPs.

According to the report, this market represents a potentially great opportunity for companies that are able to adjust their business strategy and products to meet the partnering needs of the ASPs. Those that do not, however, will be left behind. In particular, the study says the ASP market can have an adverse effect on ISVs who do not focus on the ASP model and identify proper channels for their products.

"Partner programs are a vital mechanism for software vendors to effectively manage sell-through and sell-with alliance relationships," adds Graham. "Partner programs also offer a set of pre-defined standards that guide the agreement terms and conditions a vendor sets for interacting with partners and define a hierarchy of conditions for preferred access to vendor resources."