These are the main findings of a new report, "Wireless ASPs in Europe: An Endangered Species", examining the business models, target markets, obstacles, and likely winners in the evolving European market for WASP services. With the new e-economy requirements of instant communications with workers, suppliers, and customers enterprises are beginning to buy into the idea of remotely hosted and provisioned applications, made available at relatively low cost.

The Yankee Group concludes that the start-up stampede of 2000 towards wireless pure-plays will soon result in a mass cull in 2001, largely as the market faces general rationalisation. The market will probably move towards a more defined value chain, with more cross industry software, hardware, content, infrastructure and consulting partnerships being formed. Established players, from software vendors to hosting providers, will continue wireless-enabling their products and systems to stimulate supply. However, demand is likely to remain low unless awareness levels are raised, particularly among SMEs, the segment that stands to gain most from the WASP model.

"There is a compelling case for making desktop and back-end applications available to remote workers" according to Farid Yunus, analyst with the Yankee Group's Wireless/Mobile Europe Planning Service. "This is particularly for SMEs, who lack the manpower or skills to develop the systems in-house and have accountants comparing apps-for-rent at $50 per month with a customized $1 million solution."