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Application Service Providers (ASP's) and the Role of Hosting By Staff Writer Application service providers (commonly referred to as ASP's) have quickly sprouted onto the web hosting scene in effort to provide businesses with new services. The term ASP should not be confused with it's widespread previous meaning of active server pages – a type of dynamic programming developed by Microsoft. According to IDC: "ASPs provide a contractual service offering to deploy, host, manage, and rent access to an application from a centrally managed facility. " Essentially, ASP's are companies that develop and operate a software application and then provide remote access in exchange for a per-usage or monthly fee. The number of applications provided through the ASP model is growing. However, not all traditional client/server applications are available in the ASP format. Accordingly, there is a growing business of companies developing software for the ASP 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 frequency. Others are geared towards using the power and group connectivity provided by the Internet to provide an application that can be used daily. ASP's have produced software to handle such business functions as materials management, human resources, financial management, and e-commerce transaction services. The variety of solutions provided by ASP's is vast – for instance KnowYourStuff.com provides web-based training software that allows users within a specific marketplace to join together and publish, access, and report on each other's training materials. Another example is LeadMaster.com who produces a sales management tool for handling sales leads, data mining and sales forecasting. Many of these niche industry ASP's are doing vibrant businesses in meeting the operational needs of companies across different industries and business functions. <%getBannerByGroup("bottom_main")%> There are a number of technical and business issues currently being tackled by ASP's to enable more rapid development. These include separating the remote application administration capabilities from the software application itself, being able to isolate individual customer accounts, and developing a usage based billing system. A major advantage for businesses in seeking ASP services is that they provide an opportunity to reduce costs and increase efficiencies. Companies can have access to a wider-range of software products with the possibility of paying less than an outright purchase through usage charges. This allows businesses to access applications that can service particular business needs so companies can focus on their core operations. Furthermore, ASP's are developing new powerful software that can provide business solutions to operating issues not previously addressed through PC-based software. ASP's also remove many of the technical administrative and maintenance issues associated with software by providing real-time upgrades, remote hosting, and overall software management. What are the web hosting companies doing in the ASP market – they don't really seem to be developing software? Well, some certainly are involved in the development of applications – however, many of the hosting companies serve to provide network management and serve the application remotely to users. In providing ASP-related services, these companies are essentially AIP's (application infrastructure providers.) An AIP supplies application providers with all of the infrastructure and systems management necessary to deliver the services of the their software. The ASP marketplace and the hosting services provided by AIP's is growing rapidly. For those looking at ASP services, check on the variety of software provided and the reliability of the hosting companies providing the ASP hosting. Quite likely though, ASP services will be of significant financial benefit to your business. Return to the HostIndex.com Main Page