For most small and medium sized
businesses, the thought of buying new hardware, fixing network problems on a daily basis,
and upgrading and installing new software every six months can create quite a headache.
Over the past few years, new companies have emerged with services to help reduce these
headaches and allow businesses to outsource these information technology (IT) functions
... leaving the businesses to focus on what they do best.
These new "outsource IT" companies are called
application service providers (or ASPS). An ASP is a service firm that manages,
deploys and remotely hosts software applications through centrally located servers in a
"rental" or lease arrangement with businesses. For the businesses, an ASP
provides a cost-effective solution where they can receive the management, maintenance and
support of their IT needs.
How do ASPs work?
The business (or user) does not own the software in the ASP
model. However, the user doesn't have the responsibilities associated with initial and
ongoing maintenance, either. Through an Web browser, personal computer or using
thin-client technologies, the user is able to access the applications from anywhere in the
world. Because the application is processed on a centralized server, users can run
powerful applications without the need of a powerful computer.
The necessary components of ASPs include systems integration and
implementation, data center infrastructure, and support and maintenance. These are
essential ingredients in the success of an ASP.
If you are a business looking to use an ASP for your software
needs, be sure to understand the capabilities of the ASP you are working with. There are
ASPs that specialize in one specific software application and ASPs that can offer complete
solutions for your company. |
It is important to know the limitations of the service firm you are working with.
Until now, this kind of outsourcing of computing has really only
been used and available for large corporate businesses.
As technologies have improved and prices have become more
reasonable, an ASP offers the ability for a small to medium-sized business to have a
large, enterprise-class solution at an affordable price.
The costs involved: The pricing of ASP services are highly
dependent on the individual components in the business model, and therefore can be highly
variable.
Typically, a company enters into a contract with the ASP, which
includes a fixed monthly payment structure. The structure is normally based on the number
of users, the type of software that the company needs, and the system resources needed to
manage the applications.
The end-user (or business) can be charged for access to the
applications in many different ways. This could include one or a combination of the
following:
· Per month
· Per concurrent user
· Per day
· Per authorized user
· Per minute
What are the benefits of using an ASP?
It is always great to learn about new technologies.
The key is if these new technologies will truly help improve your
business or personal productivity, make you more efficient, or will save you time and
money .. the technologies of the ASP model can do all of these.
Once primarily used by large corporations and enterprise
solutions, ASPs are now assisting small and medium-size companies, and even individual
consumers with their software application needs.
Some of the benefits of ASPs include: |
· Increased performance. The software applications run
on powerful server farms that allow for faster, more efficient computing.
· Remote accessibility.
Because the software is running from a server, you
can access the applications from any location in
the world with simply an Internet connection and
a standard Web browser.
· Platform-independence.
Operating system incompatibilities no longer are
an issue. Whether you use Windows, Macintosh, UNIX
or even DOS, you can use the applications just like
everyone else.
· Save money on
hardware. Because the applications are run on server
farms, your hardware needs are unimportant. There
is no need to be concerned about upgrading RAM,
disk space or increasing CPU speed.
While an ASP offers many benefits, there will always be some
businesses that are uncomfortable letting an outsourced firm manage their computing
systems. With issues of security, backup and reliability, the ASP must be trusted. It is
important for the ASP to explain its systems and policies, and to build a relationship
with the business so it feels comfortable.
ASPs have become more like partners than simply a service firm.
Businesses are relying on them for a very important aspect of their productivity.
Of course, there will always be those businesses that will choose
to spend a lot of money on hardware hire extra employees to manage their computers systems
and upgrade their software every six months... they will just need to buy extra aspirin as
well.
Jason Kreidman is the Chief Executive
Officer of eSERVER Inc.,
a San Diego-based application service provider specializing
in server-based computing solutions and application hosting.
To learn more about ASP services, visit
www.eserver.com or contact
Kreidman at info@eserver.com. |
