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Application Service Providers And Why They Are Necessary

Jun 10, 2008
Application service providers (commonly referred to as ASP's) have quickly sprouted onto the web hosting scene in effort to provide businesses with new and innovative services. The term ASP should not be confused with Microsoft Corporations software application. Is a business that provides computer-based services to customers over a network.

The number of applications provided through the ASP model is growing. Accordingly, there is a growing business of companies developing software for that 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.

There's a lot of companies working right now trying to develop solutions for a great variety of business. These companies develop software dedicated to various functions as e-commerce transaction services, materials management, human resources and financial management.

ASP applications are becoming more popular as more businesses look to outsource their information technology so they can focus on their core business. These are good news to a great number of companies. Because this model provide them good, focused, cheap software that can service particular business needs so companies can focus on their core operations. The ASP's give companies access to more software products, and what's more important, software focused in their needs. So, costs decrease while efficiencies increase. Also, these companies develop software and solutions that you will not find in any other PC-based software and remove many of the technical administrative and maintenance issues associated with software by providing upgrades, remote hosting and support.

There's also another kind of ASP's, they are called AIP's or application infraestructure providers. They are hosting providers that offer a full set of infrastructure services for hosting online applications; or more simply, an ASP for ASPs. This is the result of web hosting companies involved in the development of applications.

So, considering the uncertainty, why do businesses continue to flock to outsourced solutions like ASP applications? It can save you big money. In spite of the limitations of this paradigm, the cost savings generally outweigh the risks by a large margin. The total cost of ownership is much lower, you don't have to worry about licensing software for every workstation, and you can leave the technical details to the technicians while you concentrate on your core business operations. The next time you are considering software for your organization, search the Web for an ASP application that does the job and compare it with your other choices. An ASP solution isn't right for everyone, but it might be right for you.
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