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Online rental computing set to obsolete shrinkwrap

London UK, 18th November 1998: An emerging model of online computing pioneered by application service providers (ASPs) is set to obsolete traditionally purchased software, argues a new report.

Packaged Software Rental: The Net's Killer App describes how the Internet is moving towards a server-based computing model in which users rent access to applications instead of owning software.

With the establishment of online rental computing, says the report, "[Users] will access the applications they need, on demand, from online providers who will charge them by the second for the precise value of the features and resources they choose to use."

Warning of "bitter struggles" while ASPs refine their business models, the report describes the different ways in which they are beginning to operate today, and the challenges that these new providers face.

It also explains how rental-based models such as subscription and outsourcing are combining with packaged software concepts and online technologies to make online rental computing a reality in the Internet today.

Among other predictions, the report says software rental will:

  • become the primary source of income for portals
  • legitimise online payment for business services
  • kickstart building of an online e-payments infrastructure
  • turbocharge the adoption of componentised software
  • revive the flagging NC (network computer) concept
Packaged Software Rental: The Net's Killer App, published by Farleit Limited, is available under licence in Adobe Acrobat format for a single copy price of £95, or £275 for up to nine copies (in UK pounds). Its author, Phil Wainewright, is editor of ASP News Review, a specialist monthly subscription newsletter for the online rental computing industry.

Further information about the report and newsletter, including a full contents listing and online ordering facilities, can be found at the ASP News Review online website, which also features news, analysis and an online directory of rental software vendors and ASPs. The website is at

Headquartered in London, Farleit Limited is a UK publishing venture founded this year to combine traditional information publishing values with the best of the opportunities offered by Internet technologies and the World Wide Web.

Media contact:
Phil Wainewright
+44 (0)171 387 7846
[email protected]

To see a report overview and the contents listing, click here>>


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