Application Service Providers (ASP) are represented by a growing number of IT businesses delivering computer services from a central datacenter.  ASP solutions are very effective at reducing and in some cases eliminating the need for complex computer systems at the customers’ site.  A well run ASP service caters to businesses with niche computing needs or streamlined industry computer practices. 

The costs for an ASP service may seem high at first until factoring in the total cost of ownership associated with building and managing a complex computer system onsite.  Many businesses shy away from not “owning” their computer system and look unfavourably on ASP’s.  This will change in the future as computer systems become more centralized and monthly computer services become the accepted norm.  It is typically not in the best interest for businesses that do not specialize in IT to be responsible for an IT solution.  It doesn’t make sense to have an IT guy diagnose and illness, so why should a doctors be responsible for the health of their computer systems.

ASP’s are becoming more prevalent, however there are still many questions that must be asked before jumping on the ASP bandwagon.  A complete ASP solution will only require “dumb” terminals at the customers’ site, which begs the question what if there are other needs like accounting, email, pictures, peripherals, etc. not supported by the ASP.  Maybe there is equipment onsite like x-ray or manufacturing machines that need to communicate with a “smart” terminal or server.  I would say the most prevalent concerns one should have with an ASP is stability, security and disaster recovery.   ASP solutions rely completely on the quality of the Internet connection at the customer and service providers’ site.  Your service will only be as good as quality and security of computer infrastructure provided by the ASP.  And most importantly all your eggs are in one basket, so you must be absolutely confident that the ASP has a comprehensive disaster avoidance, disaster response and disaster recovery solution in place.

When considering an ASP, make sure you get a rock solid Service Level Agreement (SLA).  Ensure the ASP is backed by a proven disaster recovery solution and has taken every possible security precaution.  Consult with an IT professional who understands the ins and outs of ASP services to see if it is right for you in both the short and long term.

Don’t be too quick to assume that ASP’s are the one-stop miracle IT solution you’ve always dreamed about.   Be aware and proceed with caution.