ASP the best model for SMEs, says IDC

By Sreejit Pillai, Malaysia.CNET.com, CNET.com
Tuesday, April 24, 2001 08:48 PM
KUALA LUMPUR--International Data Corporation (IDC) estimates that local small and medium enterprises (SMEs) will look to the application service provider (ASP) model for their e-infrastructure in the years to come.

Enterprise applications senior analyst Alan Tong said currently many local SMEs were using the Web to integrate internal processes like human resource management and logistics.

"But with ASP, these companies now have an opportunity to use the Web for its supply chain management (SCM) needs," he told a press conference during IDC's Directions 2001 seminar held today.

"There is no need to make big investments in this respect ... they (SMEs) can select the modules they want via an ASP, if cost is a big factor," Tong said.

IDC managing director for Asia Pacific Piyush Singh added that in the next five years, complete integration of an enterprise's entire value chain would be seamlessly integrated centred around the Internet.

"The ASP model will definitely make it easier for SMEs to participate. The evolution of electronic data interchanges (EDI) for example, was driven by big companies like Sony acting as a hub, encouraging its partners to get involved.

"In the same way, we can expect the supply chain automation of many SMEs migrating to the Web via the ASP model," Singh added.


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