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Introduction
Application hosting can often be described as allowing an outside organization to host in-house software platforms - similar to a subscription based software service. For a periodic fee, the application service provider provides software and other network based services. Ultimately, this enables the organization to access high-end application at a fraction of the cost compared to operating and maintaining them in-house.
The ASP model offers a unique scalability to clients, as applications may be distributed regardless of location to any device running a web browser with ActiveX, plug-ins or Java capabilities.
Since access to the application is mainly web-based, it can be accessed from anywhere - however there are some exceptions when a VPN (Virtual Private Network) or a similar structure is required. In addition, qualified staff at the ASP end often does technical difficulties and upgrades so an organization do not have to worry about the latest software bug or scalability issues.
It is no doubt ASPs is becoming more popular everyday with studies to back that claim. According to Forrester Research, IT managers' increasing interest in application outsourcing is translating into dollars and contracts; the market watcher projects application outsourcing will surpass the $21 billion threshold by 2002.
The Benefits
As the infrastructure of the Internet becomes more complex and carrying capacity increases, it has made possible the delivery of services in a whole in way. No longer was service over the Internet slow, but fast enough to operate in real time. Application service providers are one of many who attempted to exploit these new opportunities, by supplying and operating applications for other organizations. This helped them in reducing IT overheads, and allow them to focus more on business.
The other benefits include:
- Reduce risks in a rapidly changing environment.
- Gain access to skilled expertize.
- Relieve pressure on internal resources and focus on more strategic operations.
- Reduced development, research and deployment costs.
- Remove functions that are often difficult to manage.
- No need of further IT staff.
- Remote access.
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