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Looks likely to me that the move towards a rental model of software provision (.NET etc) is exclusively designed to benefit ASPs. I think it's inevitable that ASPs will continue, I just don't think that it's very good for the client if they do.
A small company which really wouldn't need a full time IT departmant would probably do well with an ASP. It would give them the benifit of having professional support without the cost of a full time person. However, many of the places that try to get me to buy services from them end up doing the easy part and leaving me with the bulk of the work. Why should I recomend outsourcing - for example - web site development, if I still have to put in 70% of the work to make it function profitably for us.
But how many ASP's are there who are trying to be of service where they are needed?
But how many ASP's are there who are trying to be of service where they are needed?
Though the most current ASP are suffering financially, most users would admit that they have benefit from their services. Maybe their business models are not sustainable financially but that doesn't mean that their services are a failure. The users must also be lent some support to development of ASP services.
Most ASPs have offered to take the maintenance of my fixed desktop users off me - leaving me with all the mobile users! Great. Skim the easiest part of the business off, leave the tricky stuff to in-house IT, show stats to "prove" how efficient they are, and charge a small fortune. Sounds like most consultancies I've run into, whose approach could be characterised as "Now, I'm going to take your wristwatch off you and charge you to tell you the time...".
While ASPs may be useful for some businesses, such as a a national retailer, in which vast amounts of data must be sent daily from many locations, most businesses are better off with the software and hardware located in their own building.
I believe that when it comes to ASP's, they tend to believe that just because it's not you brick & mortar business, they should do things differenlty. The concepts are very good indeed, but they always overlook the fact that on the back end of things, it's always the brick & mortar business management models that work and put them ahead. Most of them tend to try and be too extravagant in marketing spending and do not review the value generated from their mediagraphics. ASP's will survive and grow if they take good care of thier clients and manage their money well.
Any thoughts about longevity of Web database publishing ASPs where non-sophisticated users quickly get their data up live on the web?
jlaguirre@atwebo.com
jlaguirre@atwebo.com
As regrettable as the two examples may be, it reflects the inevitable shakeout in a new industry. ASPs offer a valuable alternative especially for small to medium sized companies. The advantages are many -- security, service, knowledge, software, hosting, etc. In our case, our ASP (Netisun)serves as our virtual IT department.
The good ASPs, those who are not "high-flyers" and value customer service at reasonable rates will survive.
The good ASPs, those who are not "high-flyers" and value customer service at reasonable rates will survive.
Relying on ASP's or outsourcing solutions creates a tremendous vulnerability for any company...what happens if that "business partner" fails? You don't manage their personnel, their business plans, or their strategic initiatives, so you just have togo with their flow; scary at best, catastrophic at worst. SLA's are only good if they are in business...
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