Through the ASP process, Appoli offers a convenient and economical means
of deploying business applications. Outsourcing your business applications
will help reduce the burden on your Internal Technology (IT) resources;
it lets your organization use new business applications faster and enables
a smoother and more predictable cost model for running applications
ASP combines the traditional outsourcing principles with the Internet
to offer a compelling alternative to the long process of implementing
and maintaining software in-house. This also eliminates the upfront
costs incurred when you wish to upgrade your IT resources.
In the ASP model, your company's software applications are hosted and
managed offsite, and accessed either through the internet or VPN (Virtual
Private Network). The only technology you need on your premises is the
PCs or terminals used to access the applications, and an external network
Tangible Benefits of ASP Outsourcing
Outsourcing your application hosting to an ASP has many benefits that
apply to any type and size of business. The ASP maintains the hardware
server "farms" (large facilities of servers) required to efficiently host
complex applications and removes the need for companies to buy, maintain
and upgrade in-house hardware. The IT cost reductions are not the only
reason why ASP outsourcing is attractive.
- ASP customers can sign up new users or workgroups for an application
at almost a moment's notice without the need for complex infrastructure
and implementation/resource planning.
- New users can access the application without expensive upgrades to
the local technology environment. This means businesses can get new
applications, such as sales force automation or customer relationship
management software, up and running faster; can bring on more users
or users from remote offices more quickly; and can adapt more easily
to merger and acquisition activity.
- Small businesses and geographically dispersed multinationals alike
can capitalize on the benefits of application service providers. The
basic pricing model of an outsourced ASP application, which usually
includes an initial setup fee plus a monthly rental fee per user,
simplifies cash flow management. The fees will not change from month
to month because such variables as cost peaks due to upgrades are
factored into the cost.
- Small businesses can afford to implement applications quickly. And
ASP clients don't need to worry about operating system, database or
application user-license fees and compliance because the ASP bundles
all the license fees within the single monthly fee.
Intangible Benefits of ASP Outsourcing
However, for many businesses the tangible costs of the rent-an-application
model are less important than the possible intangible benefits, which
- Rapid deployment of applications in response to business change or growth.
- Reduced need to purchase new and rapidly depreciating hardware or software.
- Easier projection and management of information technology (IT) cash flows over an application's life cycle.
- Reduced need to compete for hard-to-find and expensive-to-retain IT personnel.
- Rapid roll-out of applications to geographically dispersed business units.
- Potential for small businesses to use and grow into big-ticket application suites.