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| Provider types | |
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There are several forms of ASP business. These are:
A specialist or functional ASP delivers a single application, such as credit card payment processing or timesheet services;
A vertical market ASP delivers a solution package for a specific customer type, such as a dental practice;
An enterprise ASP delivers broad spectrum solutions;
A local ASP delivers small business services within a limited area.
Some analysts identify a volume ASP as a fifth type. This is basically a specialist ASP that offers a low cost packaged solution via their own website. PayPal was an instance of this type, and their volume was one way to lower the unit cost of each transaction.
In addition to these types, some large multi-line companies (such as HP and IBM), use ASP concepts as a particular business model that supports some specific customers.
[edit] Tags:Timesheet,Small Business,Paypal,Hp,Ibm, | |
| The ASP model | |
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The application software resides on the vendor's system and is accessed by users through a web browser using HTML or by special purpose client software provided by the vendor. Custom client software can also interface to these systems through XML APIs. These APIs can also be used where integration with in-house systems is required. ASPs may or may not use multi-tenancy in the deployment of software to clients; some ASPs offer an instance or license to each customer (for example using Virtualization), some deploy in a single instance multi-tenant access mode, now more frequently referred to as "SaaS".
Common features associated with ASPs include:
ASP fully owns and operates the software application(s) - ALJO-IN
ASP owns, operates and maintains the servers that support the software
ASP makes information available to customers via the Internet or a "thin client"
ASP bills on a "per-use" basis or on a monthly/annual fee
The advantages to this approach include:
Software integration issues are eliminated from the client site
Software costs for the application are spread over a number of clients
Vendors can build more application experience than the in-house staff
Key software systems are kept up to date, available, and managed for performance by experts
Improved reliability, availability, scalability and security of internal IT systems
A provider's service level agreement guarantees a certain level of service
Access to product and technology experts dedicated to available products
Reduction of internal IT costs to a predictable monthly fee
Redeploying IT staff and tools to focus on strategic technology projects that impact the enterprise's bottom line
Some inherent disadvantages include:
The client must generally accept the application as provided since ASPs can only afford a customized solution for the largest clients
The client may rely on the provider to provide a critical business function, thus limiting their control of that function and instead relying on the provider
Changes in the ASP market may result in changes in the type or level of service available to clients
Integration with the client's non-ASP systems may be problematic
Evaluating an Application Service Provider security when moving to an ASP infrastructure can come at a high cost, as such a firm must assess the level of risk associated with the ASP itself. Failure to properly account for such risk can lead to:
Loss of control of corporate data
Loss of control of corporate image
Insufficient ASP security to counter risks
Exposure of corporate data to other ASP customers
Compromise of corporate data
Some other risks include failure to account for the financial future of the ASP in general, i.e. how stable a company is and if it has the resources to continue business into the foreseeable future. For these reasons Cisco Systems has developed a comprehensive evaluation guideline. This guideline includes evaluating the scope of the ASP's service, the security of the program and the ASP's maturity with regard to security awareness. Finally the guidelines indicate the importance of performing audits on the ASP with respect to:
Port/Network service
Application vulnerability
ASP Personnel
Physical visits to the ASP to assess the formality of the organization will provide invaluable insight into the awareness of the firm.
[edit] Tags:Saas,Html,Xml,Apis,Integration,Internet,Thin Client,Service Level Agreement,Cisco Systems, | |
| History | |
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In terms of their common goal of enabling customers to outsource specific computer applications so they can focus on their core competencies, ASPs may be regarded as the indirect descendant of the service bureaus of the 1960s and 1970s. In turn, those bureaus were trying to fulfill the vision of computing as a utility, which was first proposed by John McCarthy in a speech at MIT in 1961. Jostein Eikeland, the founder of Telecomputing, is credited with coining the acronym ASP in 1996, according to Inc. Magazine: http://www.inc.com/magazine/20000401/18093.html.
[edit] Tags:Http,Outsource,Core Competencies,Service Bureaus,John Mccarthy, | |
| See also | |
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Business service provider
Communication as a service
Hosted service provider
Multitenancy
Outsourcing
Service level agreement
Software as a service
Utility computing
[edit] Tags:Business Service Provider,Communication As A Service,Hosted Service Provider,Multitenancy,Outsourcing,Software As A Service,Utility Computing, | |
| External links | |
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Application Service Providers at the Open Directory Project
Retrieved from "http://en.wikipedia.org/w/index.php?title=Application_service_provider&oldid=464998931"
Categories: Services management and marketingSupply chain managementHidden categories: Articles needing additional references from April 2007All articles needing additional referencesArticles containing potentially dated statements from 2003All articles containing potentially dated statements
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Tags:Open Directory Project,Categories,Services Management And Marketing,Supply Chain Management, | |
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