Turning an ASP into an MSP
 
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As we've noted in previous columns, the ASP industry is evolving away from a "host and software package" paradigm to one that can be characterized as a more full-service model. The big move afoot seems to be ASPs mutating into MSPs (management service providers, that is, for those not totally current on xSP parlance).
MSPs recognize that merely providing an application service may not be enough to satisfy many potential customers. Managing the service also is important, because while the service may make the most sense economically to small companies, such customers don't usually have the sophistication or the IT staff to manage it.
If a service is packaged with a modicum of control over the quality of that service, along with a nifty interface to present the information, then even an unsophisticated customer can start to feel pretty enlightened.
So, how does an ASP make the move to MSP? Management implies a whole continuum of functions about which an ASP might not worry. In principle, however, these all boil down to guaranteeing a particular level of service to the customer. Included in this notion are such factors as availability and performance. (For a good - dare we say, excellent - discussion of service-level agreements, check out the EMA Web site) The idea is that if customers don't have the internal IT resources to manage the service arrangement, then the ASP - er, MSP - can do it for them. Of course, this requires that the service provider have, at the very least, a strong, auditable management capability.
Service-level management (SLM) is a market with many vendors and many excellent products. Micromuse is a good example. As services become more dependent on network availability, products with more networkcentric orientation will be preferable. Hewlett-Packard and Loran are fielding product suites that seem to be going in the right direction.
Ultimately, however, there needs to be a customer-controllable capability for service management. By this we mean that customers should be able to view and exercise some control over the level of service they receive.
Fortunately, providing a customer-accessible SLM interface has become somewhat easier lately. One vendor that is making a push in this area is Manage.Com, with its Frontline e.M2 product. Another vendor building solutions to address service quality, but from the IP network side, is NetReality with its Wise/IP Accelerator product. In both cases, the idea is to provide tools that ASPs can use to manage quality and allow users to look over their shoulders.
The trend is clear. As service providers push the margins of the market, they will inevitably expand the value equation. This, in turn, will generate a market for tools to enable that expanded value proposition.
The evolution of the service provisioning market is not unlike that of the PC, which began as an ugly box no one wanted to use because it was difficult to operate and had a lousy interface. The PC has evolved to include a very usable interface (detractors of Microsoft notwithstanding) with a pretty good level of reliability.
If the network is evolving into the computer, the same sorts of concerns will need to be addressed by suppliers. Customers are demanding the ability to use an application as a utility. Tools being introduced now are making that goal more realistic.
RELATED LINKS
management.com. Meachim focuses on e-business management. She is currently conducting a research study on ASP management that is due to be released in April. Nancy's email address is meachim@enterprise
management.com.
Introducing a new kind of service provider: the MSP
Network World, 02/14/00.
Nuclio makes net managing easier
Network World, 05/01/00.
New ASP twist: Mgmt. service providers
Network World, 02/14/00.
