Database Reference
In-Depth Information
site and accessed remotely. Managing an application environment goes beyond simple hosting and
may include up-front consulting, customization, and extensions of the application and ongoing
application technical support.
Factors driving the ASP solutions are as follows:
1. Enabling Technologies:
a. Pervasiveness of the Internet
b. Access and declining cost of bandwidth capacity
c. Shared applications in a client/server environment
d. Browsers as an accepted GUI application
e. Potential of e-commerce and e-business solutions
2. Technical Drivers:
a. Utilization of emerging technologies and
best-of-breed
applications
b. Accelerated application development
c. Rapidly changing and increasing complexity of technology
d. Obtaining business domain, functional and vertical industry expertise
e. Shortage of skilled IT labor
f. Transfer of risk regarding application ownership by the super users
3. Business Drivers:
a. Minimize total cost of ownership (TCO) by at least 30%-50%.
b. Predictability of cash flows by eliminating the uncertainties of post-implementation
software-related expenditures.
c. Focus on core competencies and strategic objectives.
d. Improve efficiency of internal IT staff by freeing them to focus on processes and systems
to leverage core competencies.
e. Improve coordination efforts on a global basis.
However, merely hosting and managing an application is not adequate and needs to be aug-
mented for the creation of proprietary and sustainable customer relationships with value-added
variations like
◾
Domain Expertise Emphasis
◾
Vertical Industry Emphasis
◾
Vertical Exchange Emphasis
◾
Infrastructure Emphasis
◾
Security Infrastructure Emphasis
◾
Full Service Provider Emphasis
◾
Aggregator Emphasis
Some of the challenges faced by the ASP concept are
◾
Security of information
◾
Scope and flexibility of services
◾
Overall quality of service (QoS) and support
◾
Adaptability of software
Application Service Providers (ASPs) present a real opportunity to replace the in-house IT depart-
ment. Smaller companies also need the full functionality of high-end applications such as ERP,
