Application Service Providers (ASPs) - Guide to Cloud Computing for Business and Technology Managers - page 236

and support. The cost of ownership of hosted applications can be 25%
cheaper than managing the applications internally. Other criteria for com-
panies to contract ASPs are lower upfront costs, faster implementations,
higher redundancy, larger scalability of hardware and bandwidth, auto-
matic upgrades, quicker distribution and deployment, and data storage,
backup, and recovery capabilities.
ASP services that include application-hosting services enable custom-
ers to evaluate, implement, and operate enterprise applications online.
This enables companies to perform detailed evaluations and prototype
company-specific solutions via the Internet prior to deciding to purchase
or actually purchasing the ERP, CRM, or SCM product. Customers also
have the facility to implement and continue using applications functional-
ity via the Web browser.
Using application service providers (ASPs) has many advantages, such as
• Enabling a company to concentrate on enhancing the competitive-
ness of its core functions
• Enabling a company to outsource the enhancing competitiveness of
its noncore but still-critical functions like implementing call center
operations
• Reengineering critical but noncore functions and processes quickly
• Comprehensive industry-specific and company-specific evaluations
• Rapid prototyping of company-specific implementations
• Lower upfront investments in hardware and software, technical
manpower resources, and training
• Reduced risks of initial erroneous decisions in pricing, reliability,
scalability, bandwidth, and security
• Flexibility of options like hosting, cohosting, and colocation
• Time to implement at a lower cost
• Time to go live at a lower cost
• Time to benefit at a lower cost
• Time to full ownership at a lower cost
• Time to deploy at other sites at a lower cost
• Higher service-level guarantees
• Better customer service
• Reduced administration, management, maintenance, and support
costs
ASPs need to gain customer acceptance as well as IT acceptance. The
selling focus is usually on business management—pitching a business