Enterprise Solution vs ASP

I have been looking at your towing solution. As a start, keep in mind that cost is rarely the issue, but when cost is the issue, its the only issue.

Let me make two suggestions.

First - the ASP model is focused on IT cost savings, not on the specific vertical being supported. Your company is focused on solutions for towing firms. The ASP will always be a less focused solution than yours as a result. You provide value, the ASP provides a product.

Second - look at enhancing your solution. On hardware, look towards reducing hardware costs with greater reliance on terminals versus PC. Add an auto-backup option and auto-update. Is it time to find a wirelss provider to partner with?

Of course, you may think of leveraging your expertise by moving into the ASP niche as well, maintaining your focus and leveraging your expertise. GM Dealer Systems is an example of the model I am thinking of - satellite connectivity, central processing, terminals at the remote for lower cost and higher reliability.

For additional input specific to you, contact me.

Cost is important, but don't forget risk to your client. You have to be careful that you don't sound like a scare-monger, but when you deal with an ASP you assume much more vendor stability risk.

Owning software and having it and the data stored on your own computers means that if the vendor ceases operations, you still have the software and data. With an ASP, you do not unless you're willing to pay extra - I believe that some ASPs will let you set up a kind of escrow agreement for just this sort of contingency, but escrow costs more.