ASP Business Model Transition

Written by: Sam Lee


Introduction


The words "change", "restructure" or even "upgrade" has caused more than a few headaches for managers and businesses in the past, as they attempt to steer their organization to compile with new guidelines. The transition to application hosting is no different; organizations must invest time into knowing and understanding the new processes and its consequences before jumping on board.

Importantly, adopting an application service provider and utilizing its business model must work hand in hand to benefit both parties. This may include procedures, protocols, and standard practises.

Understanding your ASP


Before leaping on board with any ASP, research their track record regarding security, privacy, reliability and scalability. A detailed description of the service is to be provided so you know exactly what is offered. The description should include the procedures, policies and other information to ensure system integrity and availability. Gaining an insight into an ASP business will assist you in deciding whether their service is compatible with your own.

Service level, the standards that the service must perform to, is another element that needs to be examined. SLA (Service Level Agreements) between you and your ASP should focus more what is deliverable and available rather than the latest technology or the means of delivery. The SLA in some ways protects your business organisation from productivity and financial losses, as compensation is often awarded when SLA is not upheld.

Resource Allocation & Control


Inquiring if your applications will be stored and maintained on dedicated servers or not is necessary for a number of reasons. Sharing resources and access on a single server with other organization can present security and service quality issues. For example, you do not want to be bogged down by others when running mission critical applications.

Network connectivity should be maintained and provided by application service provider since they have the expertise to manage it. However, this is not always the case. It is common for organisation that already have Internet access will instead maintain their own network and connectivity to the ASP. If you intend to utilise your existing network, make sure your ASP will provide training and support to assist your organization during and after transition. For instance, the ASP may require technical standards or practises that your business is not familiar with.



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