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SOFTWARE ON TAP
It’s hard to open up a computer or technology magazine these days without seeing at least one article trumpeting application service providers, or ASPs, as the future of the Internet.

An ASP is a company that delivers software applications and computer services to users via the Internet. Rather than purchase and install applications such as financial management and office productivity software, you can subscribe to an ASP that will provide the application on a pay-per-use basis.

There are currently about 500 ASPs providing a wide variety of online applications. Big players in the software industry—including Microsoft, Sun Microsystems, McAfee and Lotus—already are "renting out" some of their flagship products online through ASPs, while start-up companies are introducing new services every month.

Renting software through an ASP rather than purchasing it on CD-ROM can provide several advantages.

For small businesses, the most significant advantage is probably the low cost of entry and short setup time for introducing a new software application to the office. The ASP already has the software licenses and the servers that run the applications, so all you have to do to begin using the program is purchase a subscription.

Staffing is another key advantage. Since the ASP hires all the technical people to keep its systems—and your software—up and running, there’s no need to augment your staff with an information technology specialist.

Finally, renting software, particularly applications that are necessary for your business but not used on a daily basis, can result in cost savings compared with purchasing the software outright.

Before jumping on the ASP bandwagon, though, there are a few considerations to weigh.

The performance of software accessed through an ASP can vary greatly, depending on the speed and reliability of your Internet connection. Broadband connections by cable or digital subscriber line should handle the demands of running an application over the Inter-net easily, but anyone using a dialup modem should be prepared for slow performance.

The reliability of each ASP to which you subscribe should be investigated thoroughly. It’s probably a safe bet to assume no ASP can guarantee its service 24 hours a day, seven days a week, 365 days a year. How much downtime can you and your business live with?

Data security also is worth considering. Not only will you be storing your business’s data on the ASP’s servers, but you also will be sending those data back and forth over the Internet every time you use your software subscription. While most ASPs will offer a security guarantee, you need look only as far as the technology news each week to find stories of hackers breaking into supposedly secure systems.

If you are interested in learning more about ASPs, the ASP Industry Consortium Web site, at "www.allaboutasp.com", is a good place to start. The online ASP Directory, at "www.asp-directory.com", will give you an idea of the wide range of services and providers available.

Joe Hoyle, electronic media editor, ADA Publishing, a division of ADA Business Enterprises Inc., "hoylej{at}ada.org".

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