ASPs: Making the Decision

by Eric Buel

For many companies, the decision to use an ASP is an easy one. After all, ASPs can provide all the benefits of an enterprise software package without much of the burden of software ownership. Eliminated are the cost of building and maintaining proprietary software, supporting and upgrading hardware and other IT infrastructure, and other components of the total cost of software ownership. ASPs allow client companies to focus more on their core businesses and less on the business of IT, which is steadily consuming an increasing percentage of corporate revenue. You've probably seen the recent television commercial where everyone is in the office on a Saturday talking about his or her real business instead of the latest IT emergency: ASPs can provide this type of comfort and ability to focus. In addition, ASPs provide the flexibility that Internet users expect, such as access anywhere, anytime. There are many who see the use of ASPs increasing to the point where the ASP model becomes the standard for companies using major software applications. But at what cost?