Application service providers or ASPs are leading the way for turnkey video services at affordable prices says Frost & Sullivan. They are going to drive the migration from traditional 'transport' services to value-added, web-based, comprehensive managed services.

In the past, says Frost & Sullivan, videoconferencing services were confined to niche markets and many potential end users had the perception that only large enterprises could benefit from its use. The emergence of ASPs will increasingly change this perception leading to wider adoption of videoconferencing.

Service providers have begun to deliver packaged videoconferencing applications over the web, bundling it with related services such as video-content storage, video on-demand, video broadcasts, and v-mails.

"A growing number of video-ASPs (VASPs) are offering fully outsourced
solutions with compelling benefits," says Frost & Sullivan analyst Roopam Jain. "Instead of investing money to build and maintain a video network, end users can pay a monthly fee to a third-party provider that has such a system already in place. The lure for this is strong for small to mid-sized companies.

"The demand for one-stop shopping is increasing as customers are seeking the convenience of having one bill with one point of contact that offers all elements needed for a successful videoconference, including transport, bridging, and endpoints," says Jain.