ASP - Application Service Provider
By Jeff Schraeder

Application Service Providers (ASP) deliver the software functionality you need for your firm through the Internet or through private telephone connections. If you lease a car, use a lawn service, or have a financial advisor manage your stock portfolio, you understand the concept of ASP. An ASP delivers a service that requires a great deal of expertise and equipment that your firm either does not or chooses not to own.

The technology we need to run our firms is complex. Installing specialized software, making sure you have chosen the correct parameters, backing up your data, recovering lost data, installing upgrades, applying fixes (repairs), and protecting your data from intruders (unauthorized use) is time-consuming and complex. It takes specialized skills to do more than routine maintenance chores on our computer systems.

If you are going to do it yourself, you will need to invest time and energy that may be better spent servicing clients, or you will have to spend money to hire and train someone with the required skills. There is another choice – pay someone to do it for you. ASPs provide that level of support.

An ASP operates a centralized computing center that actually runs the software application that you need. You access the application through your Web browser or through a specialized client connection. In most cases, the ASP will download a small piece of software called an "add-in" or "thin client" to your local computer. You can then use the application as if it were running on your local computer. The ASP will set up the software, back up your data, fix any problems that occur in the software, install upgrades, protect your data from intruders and monitor the performance of their service.

A few years ago, ASPs tried to capture market share but did not succeed. ASPs need to deliver complex, specialized software. Back then the technology was not mature enough to provide either the performance or reliability needed by businesses for mission-critical software.

Today, that situation has changed. The industry giants such as IBM, Microsoft, Oracle, and others provide mature, robust products that make an ASP an effective software delivery vehicle.

Choosing an ASP can be difficult unless you follow a disciplined selection method. The functionality of the ASP’s application is the critical factor. ASP is a flashy technology, but it’s kind of like a talking dog in a circus – after you’ve heard it talk a few times your amazement wanes, and you begin to wonder if it’s saying anything worthwhile. The major considerations in choosing an ASP are the product (software) and the delivery system (performance and connectivity).

Product

The ASP delivery method is technically complex. The early ASPs for the most part just "Web enabled" their product. That means they added some mechanism to the product to let it use the Internet, a low-quality solution. The best ASP products are designed from the start to be delivered through the Internet. Look for ASPs that offer a product designed for Internet delivery.

Make sure that you understand the limitations of the application you choose. Can it deliver the "use anywhere, use anytime" service you need? How does it handle local printing? How does it handle the movement of large amounts of data? You can’t just rely on brand names; you need to understand your needs and be sure that the product you choose works for you. Check references, and be sure to "test drive" the application, preferably on you own equipment, before you buy.

Delivery

Bandwidth is critical. Bandwidth is simply how much data your Internet connection can handle without slowing down. Unless the ASP application behaves as though it were running on a local machine, it will reduce productivity rather than enhance it. You may need to upgrade your Internet connection or install a dedicated high-speed telephone connection.

The ASP should be operating a world class data center in order to provide you with the reliability and security you need for your business. You will be entrusting them with your critical data. Don’t just take their word for it. Go look for yourself, if you can. If you can’t go look, ask pointed questions. Do they have operational processes in place and are they used? How do they do maintenance releases, and how often do they do them? Is there adequate physical security? What kind of emergency power do they have? Do they act in a professional manner? How will they enhance the application in the future? What is their budget for that activity?

One of the ways to control your experience with an ASP is to negotiate a good Service Level Agreement (SLA). The ASP should be willing to guarantee you a specified level of service with severe penalties for failure. This can be difficult since some of the service is dependent on the Internet itself and out of the control of the ASP.

Benefits

As with all things in life there are pros and cons to using an ASP.

On the negative side:

• The performance of the Internet is not always predictable
• Converting from your current application to an ASP may be time consuming
• You may have to make some changes in the way you do your work
• Exiting the relationship may be difficult.

On the positive side:

• You can work anytime from anywhere
• You no longer have to worry about software installation and maintenance
• Your data is being backed up reliably
• The ASP monitors performance and intrusion detection
• You may be able to reduce you capital budget depending on how the ASP delivers its service

Jeff Schraeder is a co-founder of ConvergentWorks, a firm that provides technology outsourcing to law firms, consultants, and other small to medium sized businesses. He can be contacted at jeff@convergentworks.com 

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