Application Service Providers Taurean Dossett Management Information Systems Professor Sistrunk MWF 1-1:50

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

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 center 1 1

History In 1994, the Internet began its boom 2 2 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 maintain 3 3

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 volume 4 4

Advantages vs. Disadvantages Advantages –Low cost –Simplifies business activities –Pay-As-You-Go system –Eliminates expensive IT infrastructures –Reduces head count 5 5 Disadvantages –ONLY for businesses with exceptionally frequent use of applications, the cost at Pay-As-You-Go can be expensive

Commonly Used ASPs Webhosting.com- provides webhosting services at monthly rate Hotmail.com- provides services for free or at monthly rate Efax- provides software that allows faxes to be sent to boxes DoubleClick- manages online advertising for businesses 6 6

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 anytime 7 7

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 future 8 8

End Notes 1. "What is an Application Service Provider?" Webopedia Oct "What is an Application Service Provider?" Webopedia Oct < e_Provider.html>. 2. Brain, Marshall. "How ASPs Work" How Stuff Works Oct Brain, Marshall. "How ASPs Work" How Stuff Works Oct Dossett, Timothy. Telephone interview. 24 Oct "What is an Application Service Provider?" Webopedia Oct "What is an Application Service Provider?" Webopedia Oct < e_Provider.html>.

End Notes cont Brain, Marshall. "How ASPs Work: Advantages of ASPs." How Stuff Works Oct Brain, Marshall. "How ASPs Work: Advantages of ASPs." How Stuff Works Oct Brain, Marshall. "How ASPs Work: Examples of ASPs." How Stuff Works Oct Brain, Marshall. "How ASPs Work: Examples of ASPs." How Stuff Works Oct Dossett, Timothy. Telephone interview. 24 Oct Dossett, Timothy. Telephone interview. 24 Oct