Application%20Service%20Providers

1
Application Service Providers

• Taurean Dossett
• T_Dossett_at_hotmail.com
• Management Information Systems
• Professor Sistrunk
• MWF 1-150

2
Table of Contents

• Definition
  3
• History 4
• Sub-categories
  5
• Advantages vs. Disadvantages
  6
• Commonly Used ASPs
  7
• Future of ASPs
  8
• Conclusion 9
• End Notes 10
• End Notes cont 11

3
Definition

• Application Service Provider
• A third party entity that manages and distributes
  software-based services and solutions to
  customers across a wide area network from a
  central data center1

4
History

• In 1994, the Internet began its boom2
• As technology developed, software became one of
  the easiest ways to keep up with progress
• Yet, the software became more specialized and
  therefore more expensive to purchase
• The software was also more expensive and
  complicated to maintain3

5
Subcategories

• Enterprise ASPs- deliver high end business
  applications
• Local/Regional ASPs- deliver business
  applications to local small businesses
• Specialist ASPs- provide applications for
  specialized services such as human resources
• Vertical Market ASPs- provide support to specific
  industry such as healthcare
• Volume Business ASPs- provide prepackaged
  applications for businesses in high volume4

6
Advantages vs. Disadvantages

• Advantages
• Low cost
• Simplifies business activities
• Pay-As-You-Go system
• Eliminates expensive IT infrastructures
• Reduces head count5

• Disadvantages
• ONLY for businesses with exceptionally frequent
  use of applications, the cost at Pay-As-You-Go
  can be expensive

7
Commonly Used ASPs

• Webhosting.com- provides webhosting services at
  monthly rate
• Hotmail.com- provides email services for free or
  at monthly rate
• Efax- provides software that allows faxes to be
  sent to email boxes
• DoubleClick- manages online advertising for
  businesses6

8
Future of ASPs

• ASPs represent one of the most innovative
  improvements in technology since the creation of
  the Internet
• As more businesses use the technology, it will
  lead to cheaper means of running businesses
• ASPs have made it possible for small businesses
  to compete in areas that it was too expensive for
  them to do so before
• ASPs are tending towards wireless services in
  that cell phones and other electronic devices
  will be able to access specialized software for
  various functions anywhere and at anytime7

9
Conclusion

• ASPs are the medium through which much of the
  technological advancement in business is
  occurring
• This is evident in the recent focus on
  outsourcing as well as companies developing ASP
  consulting divisions
• ASPs have allowed for increased competition and
  are therefore reducing prices by not only
  reducing costs for companies, but also increasing
  competition in industries by reducing barriers of
  entry
• ASPs have played a vital role in the health of
  business and will continue to do so by providing
  more complex and innovative forms of services in
  the future8

10
End Notes

• 1. "What is an Application Service Provider?"
  Webopedia. 2004. 23 Oct. 2004 lthttp//www.webopedi
  a.com/TERM/A/Application_Service_Provider.htmlgt.
• 2. Brain, Marshall. "How ASPs Work" How Stuff
  Works. 2003. 23 Oct. 2004 lthttp//computer.hows
  tuffworks.com/asp.htmgt.
• 3. Dossett, Timothy. Telephone interview. 24 Oct.
  2004.
• 4. "What is an Application Service Provider?"
  Webopedia. 2004. 23 Oct. 2004 lthttp//www.webopedi
  a.com/TERM/A/Application_Service_Provider.htmlgt.

11
End Notes cont...

• 5. Brain, Marshall. "How ASPs Work Advantages of
  ASPs." How Stuff Works. 2003. 23 Oct. 2004
  lthttp//computer.howstuffworks.com/asp3.htmgt.
• 6. Brain, Marshall. "How ASPs Work Examples of
  ASPs." How Stuff Works. 2003. 23 Oct. 2004
  lthttp//computer.howstuffworks.com/asp4.htmgt.
• 7. Dossett, Timothy. Telephone interview. 24 Oct.
  2004.
• 8. Dossett, Timothy. Telephone interview. 24 Oct.
  2004.