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Issue 1 Contents:
How aware are CAD users of ASPs?
CAD users reveal
how loyal they feel towards their suppliers
The CADAC /
Meta4 merger - what does it all mean?
Joining
forces with strategic partners
Research
findings from the CAD/CAM user market
The big issues facing
the US market - industry interview
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| We’re
told
that the Application Service Provider (ASP) market is booming;
multi- billion dollar predictions for this market have encouraged
several hundred ASPs to join the fray. On the face of it, CAD users seem likely candidates to
benefit from this service; ASPs could offer an avenue to keep up
with changing software versions and to manage increasing
quantities of data.
So are CAD users switched on to the
opportunities offered by ASPs?
To find out we spoke to 301 UK CAD/CAM users, as well as a
selection of French and German users.
How aware
are CAD/CAM users of ASPs?
While the term 'ASP' appears constantly in the IT press, has it
seeped into the consciousness of potential customers in the CAD/CAM
sector? The fact that three out of ten of the end-users we
interviewed said that they are aware of the term 'ASP' could
be seen as relatively encouraging for such providers. However only
4% of end-users were able to correctly explain what the term 'ASP'
means. Half of the rest gave a wrong or vague answer, while
the other half had only heard of the term without understanding
it.
Even
when we explained the concept of using an ASP to CAD/CAM users, less than a quarter of them said that they were
aware that such a facility existed.
There is clearly much awareness raising to
be done by ASPs seeking to gain a foothold in the CAD/CAM sector. It cannot be assumed
either that this target market recognises the term 'ASP' or understands the concept of
renting software via the internet.
|
Your
chance to join our syndicated study of ASPs and the Technical
Computing Market
We are preparing a
syndicated study to explore in detail the impact of ASPs in the
CAD/CAM market. If you would like to sponsor the pre-prepared
survey and perhaps add your own questions, or are interested in
buying the final report,
click here
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We asked CAD/CAM users:
if they were aware of the term
'ASP'/what they thought it meant?
whether they use an ASP now or
would consider doing so in future, and why?
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Methodology
Telephone interviews were conducted with 301 UK based CAD/CAM
users during August and September 2000. A smaller number of
in-depth interviews were conducted with French and German CAD
users. |
Using
ASPs
Only
one in fifty UK CAD/CAM users said that they currently use or have used
an ASP for their CAD/CAM software. This
2% of users came from companies with over 50 employees.
More proof of the scale of the awareness raising needed by ASPs
comes from the fact that this 2% of companies were the only ones able to
name an actual ASP.
Of the vast majority
who have not yet used an ASP to rent CAD/CAM
software, only a
fifth would consider doing so in future. Half the
respondents said that they would not consider doing so in future,
and a further three in ten were unsure.
Bearing in mind the overall low levels of awareness about
application service provision, these responses are likely to
derive from a lack of knowledge of the benefits of using ASPs, and
the fact that many SMEs have little experience of IT outsourcing.
Not surprisingly, CAD/CAM users are twice as likely to
be open to the idea of using ASPs to rent their CAD/CAM software
in future if they have purchased CAD/CAM software over the
Internet in the past. Those
with previous experience of using the Internet will be the
early-adopters of using ASPs. Vendors already selling successfully over the Internet who
move into application service provision will be well placed to
take advantage of growth in the ASP market.
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Said
one French CAD/CAM user:
I have heard of ASPs and would like to use one as soon as
possible. However, I have never seen any information about them
and would not know where to start looking. |
Purchasing
timescales
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0-3 months
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10%
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3-6 months
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19%
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12 months +
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52%
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Don’t know
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19%
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Base
= 58
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100%
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Of the fifth of CAD/CAM users who said that they would consider
renting from an ASP for the first time in future, over half said
that this would not be before a year’s time.
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All those in
favour say why
Over
half of the CAD/CAM users who would consider using ASPs felt they are
cost-effective sources of software.
Many felt that they provide flexibility according to workload; some
felt that they are an efficient way to access (the frequent!) software
upgrades and several mentioned that they provide a good way to trial
software.
The freeing up of space on computer
hardware. Renting prevents you having to stock software that is
not particularly used. You save on price as you are only paying
for what is actually used and you benefit from the automatic
updating of software. |
We would no longer have any
configuration problems - they would be the provider's
responsibility. Having to pay costs over an extended rental period
in regular instalments is better than up front as with a
purchase. |
| |
Advantages
raised by French and German CAD/CAM Users
Being able to use the software and
see if it is user-friendly and appropriate (we bought some CAD
software last year but we could not use it as it was too
complicated, so it was a big waste of money.) Renting would be
better than trialing something as problems do not always arise
during the trial period. |
It would be cheaper to rent what
you actually use, and you would also be able to use updates to
software packages very quickly. |
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All
those against say why
Over half the respondents who are not
considering using ASPs felt that they are not cost-effective.
Some said that it was just their company policy not to rent, and
others said that they just felt no need for change.
We are using specific software and
are not planning to change this requirement in the near future. |
I
think our company would worry
about the issues of security and reliability.
|
Disadvantages
raised by French and German CAD/CAM users
Our constructions are not very
complex or demanding so we won't always need the latest software
or support. |
The speed of data transfer for
pictures over the Internet is too slow. There are also the issues
of confidentiality and security. Where are my drawings going to be
stored? Are they protected? And what about accessibility - what
happens if the ASP goes out of business? I can't imagine companies
like Mercedes-Benz using ASPs for their latest car model drawings
and plans. |
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I am concerned about the issue of
dependence - things like how long the provider has been
established, the data security at the company - there's also the
speed over the Internet. |
The slow speed of data transfer via
the Internet could be a disadvantage. |
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Conclusion
Chris
Turner, Managing Director of The Business Advantage Group, observes:
‘Clearly ASPs have a major task on their hands, both
in terms of awareness-raising and education, if they are to make
inroads into the CAD/CAM market.
However, the potential is there, with many CAD reliant organisations
looking for better ways of managing their resources, such as design
collaboration and data archiving.
ASPs can find encouragement that one fifth of our sample
would consider using such a service in future - but it remains to
be seen whether issues such as the cost of bandwidth, data security
and concerns over the consequences of an ASP going bust can be overcome
to turn this potential into reality.’
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