Application Service Providers and
Hosting
Application service providers (commonly referred to as ASP's) have
quickly sprouted onto the Internet scene in effort to provide
businesses with new and innovative services. The term ASP
should not be
confused with Microsoft Corporations software application.
The number of
applications provided through the ASP model
is growing.
Accordingly, there is a growing business of companies developing
software for the ASP marketplace. What sorts of
applications are being
developed? As remotely-hosted applications can provide cost-effective
access for businesses to unique software, many of the applications are
designed to be of occasional use in terms of use. Others are geared
towards using group connectivity provided by through the Internet to
provide an application that is flexible.
ASP's have
created software programs to handle various business
functions as materials management, human resources, financial
management, and e-commerce transaction services.
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The
variety of solutions provided by ASP's is vast. Many ASP's are
doing great business in meeting operational needs of companies across
different industries and business functions. There are a number of
technical and business issues currently addressed by ASP's to develop
and enhance system applications.
A major
advantage for businesses in
seeking ASP services is
that they provide an opportunity to reduce costs and increase
efficiencies. Companies
can have access to a wider-range of software products with the
possibility of
paying less than an outright purchase through usage charges. This
allows
businesses to access applications that can service particular business
needs so
companies can focus on their core operations. Furthermore, ASP's are
developing
new software that can provide business solutions to operating issues
not
previously addressed through PC-based software. ASP's also remove many
of the
technical administrative and maintenance issues associated with
software by
providing real-time upgrades, remote hosting, remote dial in customer
support
and overall software management.
Hosting
companies are involved in the development of applications –
however, many of the hosting companies serve to provide network
management and serve the application remotely to users. In providing
ASP-related services, these companies are essentially AIP's
(application infrastructure providers.)
For mainframe web hosting applications, ASP service providers are
pioneering a new way to host and maintain business applications.