The Year In Review
By Phil Wainewright
January 2, 2002
What were the top ten news stories in 2001 for participants in the ASP industry? Rather than picking out individual stories, here's my list of the top ten themes of the year, ranked in order of precedence, starting from tenth and ending with the year's top trend.
10 — September 11th
The September terrorist attacks and their aftermath had a limited direct effect on the ASP industry. But they overshadowed everything else as a wake-up call to remind us that all business activity relies on freedom, trade and stability, and on our courage and determination to protect and defend those values.
Sept. 18th: Global Business Centers Share New York's Pain
9 — The demise of Office ASPs
Despite the millions of dollars spent attempting to make it happen, a succession of failures this year has conclusively proved that hosting Microsoft Office is a proposition that leaves small businesses owners cold. The cavalcade of failed providers that made it the centrepiece of their business model include cMeRun, Futurelink, Always-On, Cable & Wireless' a-Services division and Qwest's Apptimum initiative.
Jan. 20th: FutureLink — end of an era
8 — Data centers shrink, hosting grows
It may be hard to believe after a year of dot-com doom, data center downsizing and ASP depression, but demand for hosting is still on the rise — particularly among small businesses either looking to adopt more sophisticated e-business capabilities or simply open up a web presence. So while many have pulled out of the market, companies such as Interland, Hostcentric and Sprint have been sharpening their focus on small business hosting. And even though a series of data center startups have squandered half a billion dollars or more before routinely filing for bankruptcy this year, the good news for everyone else is that the money the original owners have lost effectively becomes a free subsidy to those who've since bought world-class Internet infrastructure at knock-down prices.
March 26th: A Show of Confidence
7 — Microsoft teeters at the top
With its early backing of ASPs and its leadership role in the creation of foundation Web services such as SOAP, Microsoft has grabbed the high ground in the battle to become top gorilla in Internet computing. But its victory is by no means assured, and at several points during the year its position has looked decidedly tenuous. Will we look back on 2001 as the year that sowed the seeds of Microsoft's downfall?
July 10th: Microsoft Stumbles As a Service
Nov 20th: bCentral Takes a Back Seat
6 — The dawn of profitability
Yes, there is such a thing as a profitable ASP. Companies achieving this landmark during the year have included McAfee.com, Prentice Technologies and Telecomputing's Norwegian operation. Others that claim to be on track to get there by the end of the year include Digital River, Outtask, AppShop and WebEx. And we're talking real cash profitability here, not the often distorted EBITDA targets that can be reached without ever coming close to operating a viable long-term business.
July 16th: Anticipating Q2 Financial Results
Sept. 3rd: A Bit of Good News
Continued on Page 2