1 / 11

Understanding Application Service Providers: History, Advantages, and Future Trends

This paper explores the concept of Application Service Providers (ASPs), third-party entities that manage and distribute software-based services via wide area networks from centralized data centers. It discusses the evolution of ASPs since the early days of the Internet in 1994, categorizes different types of ASPs, and weighs their advantages against disadvantages. Additionally, it examines well-known ASPs, their potential future in the market, and how they offer businesses, particularly small ones, the opportunity to innovate and reduce operational costs.

qamra
Download Presentation

Understanding Application Service Providers: History, Advantages, and Future Trends

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Application Service Providers Taurean Dossett T_Dossett@hotmail.com Management Information Systems Professor Sistrunk MWF 1-1:50

  2. 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

  3. 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 center1

  4. History • In 1994, the Internet began its boom2 • 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 maintain3

  5. 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 volume4

  6. Advantages Low cost Simplifies business activities Pay-As-You-Go system Eliminates expensive IT infrastructures Reduces head count5 Disadvantages ONLY for businesses with exceptionally frequent use of applications, the cost at Pay-As-You-Go can be expensive Advantages vs. Disadvantages

  7. Commonly Used ASPs • Webhosting.com- provides webhosting services at monthly rate • Hotmail.com- provides email services for free or at monthly rate • Efax- provides software that allows faxes to be sent to email boxes • DoubleClick- manages online advertising for businesses6

  8. 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 anytime7

  9. 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 future8

  10. End Notes • 1. "What is an Application Service Provider?" Webopedia. 2004. 23 Oct. 2004 <http://www.webopedia.com/TERM/A/Application_Service_Provider.html>. • 2. Brain, Marshall. "How ASPs Work" How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp.htm>. • 3. Dossett, Timothy. Telephone interview. 24 Oct. 2004. • 4. "What is an Application Service Provider?" Webopedia. 2004. 23 Oct. 2004 <http://www.webopedia.com/TERM/A/Application_Service_Provider.html>.

  11. End Notes cont... • 5. Brain, Marshall. "How ASPs Work: Advantages of ASPs." How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp3.htm>. • 6. Brain, Marshall. "How ASPs Work: Examples of ASPs." How Stuff Works. 2003. 23 Oct. 2004 <http://computer.howstuffworks.com/asp4.htm>. • 7. Dossett, Timothy. Telephone interview. 24 Oct. 2004. • 8. Dossett, Timothy. Telephone interview. 24 Oct. 2004.

More Related