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Have you ever heard of an Application Service Provider (ASP) and, if so, how an ASP might help your business?
Don't worry if the answer is "no." A recent survey by the global research organization IDC revealed that 60% of IT workers were not familiar with the term. But the rapidly growing trend towards using ASPs means that you should have a basic understanding of them and how they might help you build your business. Take a few minutes to read the information below -- we hope it will be of use to you.
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What is an ASP?
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Application Service Providers (ASPs) are companies that develop software applications, host them
from a centrally managed location, and lease them to their customers. Using a standard browser, a
customer can access these applications through the Internet or a corporate intranet. In other words,
an ASP builds or installs software applications using their hardware and their personnel . . . and then
leases and delivers those applications to a customer over the Internet at a predictable cost.
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How does it work?
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The customer or end user can access the leased software application at any time using an
Internet-connected personal computer. Under the ASP model, the customer does not take
ownership of the software -- relieving the customer of any responsibilities and costs typically
associated with software installations and ongoing maintenance. Furthermore, since the application
runs on a centralized server provided by the ASP, the end user can access powerful applications
without requiring any additional hardware beyond a simple PC.
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How much does it cost?
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The pricing of ASP services are highly variable based on the nature of the application and the degree
of customization required by the customer. However, the basic pricing structure typically includes an
initial set-up/implementation fee plus monthly hosting and maintenance fees. Regardless of the
particulars of any given package, an ASP alternative is almost always much less expensive than
building, hosting and maintaining most software applications in-house.
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Who supports and maintains ASP applications?
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All technical support and maintenance work is the responsibility of the ASP. In addition, most ASPs
also work continually to enhance and expand their existing applications.
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What are the reasons to outsource to an ASP?
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There are many benefits to using an ASP. These include:
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Access to best-of-breed technology and application expertise -- without having to hire
additional, hard-to-find IT personnel
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Reduced costs for the research, development, and deployment of IT initiatives
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Replacing capital expenditures with pay-as-you-go, predictable operational
expenses-significantly reducing investment risk in a rapidly changing environment
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Faster implementation of software applications than could be done internally -- allowing you to
get your own products and services to market faster
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Keeping employees free to focus on core business initiatives and other strategic projects
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"Platform independence" -- since operating system (i.e. Windows, MAC, UNIX) incompatibilities
become a non-issue
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Access to key applications from any location -- since all that is required is a PC and an Internet
connection
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Faster, more efficient computing -- since applications run on powerful, ASP-owned servers |
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Do I need an ASP to help my business?
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An ASP could very well help you to build your business more quickly. If you answer any of the
questions below with a YES, then you will definitely want to learn more about how an ASP, like Etrana,
can help support your technology needs.
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Do you find your human resources personnel bogged down with recruiting, training and
retaining IT staff?
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Do you find all the tech-talk about software and applications a bit confusing?
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Are your current software applications and outdated computer equipment keeping you behind
your competition?
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Do you wish you could allocate some of the budget that is now used on computer hardware,
software, networks, upgrades and IT personnel to other areas that would more directly grow
your business?
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Are you unsure what software applications can help you run your business more efficiently?
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Are you unsure that your staff really knows how to get the best results from the applications
that you are currently using?
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Do your current business processes require significant manual resources...and if so, would
automating these processes save you time and money, while providing you a competitive
advantage?
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Do you wish you could bring technology solutions to your customers more quickly than you do
today? |
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What do I do next?
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Contact Etrana at (212) 284-3400, or send an email to info@etrana.com. We will be glad to assist and
advise you.
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