Tuesday, 09 November 2004 10:34

ASP can mean big bucks

By

A few short years ago, when broadband was just a pipe dream (thanks to our innnovative carriers for many it still is), the ASP model of delivering sophisticated applications online in real time was unthinkable.

Today, it is not only only a reality but some businesses are actually reaping mega-bucks in recurring income. Yet ASP is no longer the buzz word it was two or three years ago - may be that's a good sign that the model actually works and, even more importantly, makes money.

Micronet Systems Australia has about 2000 clients around the Australia, to which it delivers its online franchise management solution, a suite, which includes POS and back office financials. Pirtek (the hose and fittings company) for instance recently signed a three year ASP agreement, believed to be worth close to $1million for Micronet, to supply its front office and back-office applications online to 65 stores. The new online solution replaced a centralised in-house Unix multi-user system, involving dumb, terminals, leased data lines and so on.

Think about the ASP business from a provider like Micronet's point of view. Firstly, rollout to multiple locations is relatively simple. All you need is a centralised server, PCs with a broadband connection at each location and virtually everything else can be done online.

Then there is the revenue model. Once you have a customer, you get monthly payments for as long as they use your system (which is usually a long time given the normal reluctance of users to change) - recurring revenue that software companies on the non-ASP model dream about.

From the user's point of view, using an ASP solution also makes sense, since the software becomes an ongoing operational cost rather than an upfront capital cost. Given the fact that most applications users are still on a non-ASP model, it does not really take a research analyst to figure out that ASP is going to be a growth market for some years to come. We won't hear much about it, however, because the research analysts have moved on to the next buzz word.

CHIEF DATA & ANALYTICS OFFICER BRISBANE 2020

26-27 February 2020 | Hilton Brisbane

Connecting the region’s leading data analytics professionals to drive and inspire your future strategy

Leading the data analytics division has never been easy, but now the challenge is on to remain ahead of the competition and reap the massive rewards as a strategic executive.

Do you want to leverage data governance as an enabler?Are you working at driving AI/ML implementation?

Want to stay abreast of data privacy and AI ethics requirements? Are you working hard to push predictive analytics to the limits?

With so much to keep on top of in such a rapidly changing technology space, collaboration is key to success. You don't need to struggle alone, network and share your struggles as well as your tips for success at CDAO Brisbane.

Discover how your peers have tackled the very same issues you face daily. Network with over 140 of your peers and hear from the leading professionals in your industry. Leverage this community of data and analytics enthusiasts to advance your strategy to the next level.

Download the Agenda to find out more

DOWNLOAD NOW!

Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments