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Pluses (benefits of using)
Someone else
- purchases, installs, and configures the software
- maintains the system and is responsible for uptime and reliability
- responsible for various software versions and compatibility
- performs the required data backups
- has to hire, train and supervise the IT staff to do all of the
above
ASP makes sense when
- speed to market is paramount
- cost savings are not the key issue
- management wants to keep staff focus on core competencies
- management wants to avoid capital outlay on software and IT staff
but wants to tap the latest technologies to provide state-of-the-art
offerings
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Minuses (reasons not to use)
- ASP market unstable, it may shrink and consolidate
- No real cost savings or additional revenue- Internal IT may resent
use of ASP
- Customization costs too much, some level of custom configuration
is always required
- Anxiety over ASP security
- Lack of knowledge transfer from ASPThings to watch out for
- ASPs may not be able to perform to claims
- Scaleability
- Avoid service level agreement short-cuts --- ask tough questions,
demand specific answers
- Define rules on data ownership, access and liability before deals
are signed
- Credit risk: what if the ASP goes out of business?
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