[Stewart Alsop] says ASP providers will succeed if they focus on non-core IT infrastructure. Corporate [CIOs] hate the ASP model. Since IT departments are rewarded for not screwing up, they almost always prefer licensing software and running it themselves to renting from a small, perpetually underfunded company... There are a couple of ASP-style companies now doing good business. Their secret is that they don't rent services that are core to corporate IT; they don't try to get companies to trust the heart of their computing to someone else. Instead, they have shown IT managers that they can do a terrific job running discrete applications.

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