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What is an ASP?
An Application Service Provider (ASP) is defined as "a business that delivers and manages applications and computer services from remote data centers to multiple users via the Internet or a private network" according to the ASP Industry Consortium. ASPs allow companies to "rent" a wide variety of software applications, and provide a compelling alternative to buying shrink-wrapped software and implementing it in-house. ASP customers can interact with a remotely managed application via Web-browser software on an anytime, anywhere basis.
+ Features of an ASP Model
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reduces the burden on internal information systems (IS) resources
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lets organizations use new business applications faster
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enables a smoother and more predictable cost model for running applications over time.
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Automatic updates and maintenance of applications
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User-based monthly application rental fee and low initial system setup fee
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Secure Internet access to application servers
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Highly configurable application-level security to limit functional access
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Template-based system setup functions to reduce implementation time
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Online training courses, manuals and frequently asked questions (FAQ) documents
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Online application support via real-time Internet conferences, e-mail and self-service help desks
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Use of "failover" backup servers to provide application uptime 24 hours per day, 7 days per week, 365 days per year
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Automated offline data backup scheduling for disaster recovery
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Automatic load balancing to ensure optimum application accessibility under user load
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Simple "add a new user" Web sign-up
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Delivery of application reports and alerts to users via e-mail
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Service level agreements (SLAs) to ensure mutually acceptable service standards
+ Benefits of an ASP Model
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the minimization of infrastructure costs for support of the application
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the bundling of many up-front and ongoing costs into the monthly application rental fee
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the minimization of pre-implementation application setup costs
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rapid deployment of applications in response to business change or growth
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reduced need to purchase new and rapidly depreciating hardware or software
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easier projection and management of information technology (IT) cash flows over an application's life cycle
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reduced need to compete for hard-to-find and expensive-to-retain IT personnel
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rapid roll-out of applications to geographically dispersed business units
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potential for small businesses to use and grow into big-ticket application suites