Advantages of ASP model
- Low cost of deployment and ownership
- Virtually no IT resources or hardware required
- Security levels are designed as appropriate for your business needs
- 24/7 maintence of the application and ensuring minimal downtime
WHY ASP?
Industry analysts estimate that the cost of maintenance equals or exceeds the cost of software, and can be as high as twice or three times the purchase price over the life of the software.
According to IDC, the market for "software as a service" will reach $24 billion a year by 2005. There is a growing body of evidence that "leaving it to the experts" results in significant IT savings and operational efficiencies. The reasons should be obvious:
- Expertise — they know the software better than anyone else.
- Economy of Scale — they can maintain, support and upgrade a lage user base using universal patches, standardized processes and self-service automation.
- Brand reputation — in the highly competitive software industry
Real gains in efficiency and cost-savings come from models that support a process of improvement based on:
- repetition
- specialization
- standardization
- automation
Pure ASPs release code only in their own, controlled, purpose-built environment. The results are the following:
- They can release bug fixes daily
- Major upgrades usually come out every 4-6 months
- Upgrades are rolled out to all customers overnight with no downtime in service
- Customer feedback gets incorporated into product in months instead of years.
(Tim Chou “The Hidden Cost of Software”, May 29, 2003).