The New World of ASPs

by John Harney

After the unprecedented proliferation of ASPs from 1997 to 2000, a period of consolidation occurred in the industry. Unfortunately, the high-profile failures during consolidation after 2000 tarred the ASP successes. But consolidation proved to be a natural phase of a maturing industry. As a result, merged ASPs acquired more customers and revenue, and by now most ASPs have achieved demonstrable growth -- the most successful have at least demonstrated dramatic revenue growth over the past six to eight quarters and may even have achieved profitability and gone public. Overall, ASPs have lived down the stigma attached to them during consolidation and have emerged as successful businesses.

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The New World of ASPs September 2004