ASP services for residentials - A challenge for network operators?

01 July 2002

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The actual situation in broadband services is described best by having one provider responsible for infrastructure and the service sector consisting of Internet service providers (ISPs) and a few application service providers (ASPs). But a closer look at the profit-and-loss statements of ISPs and ASPs makes clear that they loose money with their business models. ISPs offer a limited number of services, mostly access services with email, web hosting and plans for some paid services such as customer tailored news, video streaming, etc. ASPs are in an even worse situation. Selling software usage to businesses fails quite often because the software is not adaptable to the customers' specific needs in a multi-tenant environment. Small offices, home offices (SOHOs) and small and medium enterprises (SMEs) today use a complex environment-IT equipment including PCs, communication and business software, everything configured in an individual way. Such an environment is far too complex for a cost-effective and viable ASP business. Services for residentials are a way out of this trap. In the long term, residentials are vital to ASPs in order to survive because they need a mass market. But to target services towards residentials needs a different approach. This contribution gives a view on new business opportunities by utilising new technologies in broadband networks, digital terminal equipment and distributed computing.