Dynamic Hosting – Hambrecht & Quist LLC’s name for the growing portal-based application hosting services business – will easily become a $6.6bn market by 2003, according to a new research report issued by the company. Defined as a bundling of ebusiness software and services based on a destination web site that provides a community of users with focused software applications, content and service access, Dynamic Hosting is the most significant emerging investment opportunity arising from the convergence of e-business software, application hosting and the internet. The preliminary initial estimate is just the tip of the iceberg in terms of the potential marketplace, according to H&Q analyst James M Pickrel.
Internet growth and adoption for business, and an increased acceptance of application software and services outsourcing are the drivers behind the market. Software as a service is emerging as a new model for delivering and pricing software, adding benefits to users in the areas of systems management and administration, tailored content, a range of lead generation and focused commerce services. For software providers it can counteract the effects of cyclical markets, back-end loaded quarters, reliance on big-ticket sales, and diminishing follow-on revenue opportunities, the report claims. H&Q identifies Ariba Corp, Critical Path Inc, Microstrategy Inc, Siebel Systems Inc, ESPS Inc, Great Plains Software Inc, Oracle Corp, Sagent Technology Inc and SalesLogix Corp as the strongest prospects in the market.
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