Application Service Provider and their Services

Application Service Provider in Comparision

An Application Service Provider (ASP, means something like Andwendungsdienstleister), is a provider that offers an information exchange on a private or a public network. The provider takes care of the entire process, such as patching, data backup and also the support of the user. The required software is not bought but rented over the data network (for that time of use). By using an Application Service Provider, it is possible a company to outsource all of its administrative area and to concentrate on their core business.

The whole process is in most cases by concluding a contract. A legal Beruteilung does not take place because the Application Service Provider simply provides an activity. Just missing here applicable warranty rights. Also, a corresponding service contract may not be accepted because the application service provider only provides the software. A design as a lease (lease law) is less likely.

Emerging Opportunities:
- An alignment and standardization of IT solutions
- A focus on core business by the customer and the ASP provider
- An appropriate choice of supplier continuous standardization
- There is no upfront cost for hardware and software purchase, so no capital commitment
- Customers can control costs very well, he has a good ability to plan
- There is no upfront fixed costs, short-term and very broad scalability
- The introduction of new services, no bond is possible
- There are only low training costs
- It creates a risk transfer to the ASP provider
- For internal solutions, the ASP provider high level of competence
- The ASP provider can combine the functions of many customers

Emerging risks:
- For Internet problems no use is possible.
- There are costs for transferring the data to the respective ASP provider
- When confidential data is available only mild security

Strengths:
- Transparency and predictability of costs
- The technology is up to date
- Competence by the ASP provider
- Rapid integration of software
- Improved service
- The use of different sites is possible

Weaknesses:
- Security
- High dependence of the ASP Provider
- No own IT skills
- There is no direct customer contact is present
- It upfront longer response times
- Highness of company data



Further informations in german can be found here.