Hosted or licensed: It’s a tough choice
- By Alan Radding
- May 1, 2005
According to JupiterResearch, the U.S. Web analytics market will increase to
$931 million in 2009 at a compound annual growth rate of 20 percent during the
next 5 years. The hosted segment of the market will grow comparatively faster
and surpass spending on licensed software solutions in 2007.
“The licensed software solutions are generally not as mature and lack
some of the latest features,” says Eric Peterson, site technology and
operations analyst at JupiterResearch. The hosted solutions rely on
tags, and it can be hard to deploy the tags throughout the Web site.
Each type has its benefits and drawbacks. Now we’re seeing a relative stalemate.”
The ASP vs. licensed software debate closely mirrors the debate around the
preferred method of data collection, tags or log files. Licensed software
tends to use logs, because it sits on the server attached to the corporate
network. ASPs prefer to use tags placed on each page and monitor
them on the Web site. “It’s hard for an ASP to use log files,” Peterson says.
“It means trying to FTP gigabytes or even terabytes of log files over the network.
The hosted services could do it, but they almost always use tags.”
The growth in the market, according to Peterson, in his report “U.S.
Web Analytics Forecast, 2004 to 2009,” will come primarily from companies
currently deploying homegrown analytics software. These companies will be attracted
by the rich feature sets and stable and predictable pricing of the leading Web
Additional market growth will come as the vendors sell upgrades and
enhancements to their existing customer base. Here, Peterson says,
the greatest growth will occur in online retail, financial services, travel
and information portals, all growing more than 60 percent from 2004 to 2009.
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Report: Web Analytics
Alan Radding is a freelance technology writer in Newton, Mass. He can be reached at [email protected].