Application Service Providers

1. Application Service Providers Taurean Dossett T_Dossett@hotmail.com Management Information Systems Professor Sistrunk MWF 1-1:50

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 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 Advantages vs. Disadvantages

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 <http://www.webopedia.com/TERM/A/Application_Service_Provider.html>. • 2. Brain, Marshall. "How ASPs Work" How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp.htm>. • 3. Dossett, Timothy. Telephone interview. 24 Oct. 2004. • 4. "What is an Application Service Provider?" Webopedia. 2004. 23 Oct. 2004 <http://www.webopedia.com/TERM/A/Application_Service_Provider.html>.

11. End Notes cont... • 5. Brain, Marshall. "How ASPs Work: Advantages of ASPs." How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp3.htm>. • 6. Brain, Marshall. "How ASPs Work: Examples of ASPs." How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp4.htm>. • 7. Dossett, Timothy. Telephone interview. 24 Oct. 2004. • 8. Dossett, Timothy. Telephone interview. 24 Oct. 2004.