Enterprises look to Google for ASP services

Google is the most trusted organisation to deliver on-demand applications

Large enterprises rank Google as the most trusted organisation to deliver on-demand applications, according to newly published data from analyst firm IDC.

Hosted applications, which are delivered to computers over the internet, include software such as Salesforce.com and hosted email accounts from Hotmail and Gmail.
The IDC survey asked 30 companies with revenues between $500m and $80bn about their preferences for online applications. About half would be interested in using hosted applications, and about 85 per cent of those said they would look at Google to provide such services, followed by Yahoo and Amazon.

These companies were ranked higher than established software providers such as Salesforce.com and Microsoft.

David Tapper, IDC's programme director for IT outsourcing, told vnunet.com that respondents were interested in using hosted applications for text editing, complete hosted desktop systems, CRM software and industry-specific applications.

But the analyst warned that Google needs to clear several hurdles before it can start offering on-demand applications such as security and regulatory compliance, and must provide proof that the services actually work.

"If Google can overcome these concerns, enterprises would consider buying the services from them," said Tapper.

Amazon, Google and Yahoo do not currently provide hosted applications for enterprises, although Amazon does manage online stores for partners including Toys R Us and Borders.

But all three have a strong track record in hosting their own online applications and delivering a high system uptime.

A spokesman for Google declined to say whether the company has any plans in this area, citing a policy of not talking about unreleased products. Yahoo and Amazon did not return phone calls seeking additional information.

IDC plans to publish a report about its findings next week.