What does ASP stand for

Asks jammyjoe

A. It means application service provider.

Q. What does an ASP do

A. An application service provider rents a company or individual access to applications (usually software-based services) and related services over the Internet or leased lines, which would traditionally be located on their own PC or company server.

Q. What are the benefits of using an ASP

A. There has been a lot of hype about ASPs over the last year or so stating that they save a company (and individuals) money and resources.

Q. What type of applications would ASPs provide

A. It can be any type of software that can be accessed over the Internet, but some examples of applications used so far include:

* Local area networks (LANs) for mobile users that are located off company premises using a common file server - the benefit of this ASP is that a company that rents the LAN does not have to spend money in having it installed and then more in maintaining it. It also ensures that the latest technology is employed because most applications will be automatically updated when new software enters the market, which saves a company more money, as there will be no need to upgrade.

* The use of a remote access server

* Web hosting services

* Specialist software (and large mainframe computers) that would be economical for a large company or corporation to invest in, but far to expensive for a small company to install and maintain.

* Email storage and/or routing services

* Access to procurement trading hubs for buying goods over the Internet

* Support for electronic data interchange or other electronic transaction transmission.

Q. Too many acronyms I know, but is an ISP an ASP

A. Yes it is as ISPs manage web servers and e-mail servers over the Internet, plus hosting web pages for businesses and individuals. An ASP can be looked at as simply extending the model of the ISP and adding software applications to the mix. Plus the fact that an ASP doesnt simply host software but maintains it and provides a complete back up and support system should you need it.

Q. What type of companies provide ASPs

A. Hewlett Packard, Microsoft, SAP, Qwest and Citrix to name but a few are all application service providers or ASPs. One of the most popular services is that offered by Microsoft, it rents out its Back Office products e.g. Windows NT Server, SQL Server on a rental basis to some companies, who pay on a pay-as-you-use basis.

Q. Are there any downsides to using an ASP

A. It depends on your viewpoint, it cannot be denied that ASPs create a great deal of cost savings over time, but an individual or company never actually owns the software or services it outsources - so once a contract is terminated they have no back up system.

A recent report written by Byline Research, and commissioned by the Cedar Group (itself an ASP) found that while most people it surveyed could see the benefits of using an ASP, but over 50% of those people also expressed caution in relying on a third party for vital strategic services and expressed doubts about the quality and reliability of those services provided by ASPs.

In addition, because you're usually accessing applications from an ASP over the Internet the service can be affected by influences beyond your control e.g. heavy Internet traffic can slow the service down - and if you're of a paranoid nature it could be open to hackers.

Q. Is there any way that customers can be assured of the quality and reliability of services provided by ASPs

A. The Application Service Provider Industry Consortium (ASPIC) was set up in 1999 to do just that. It has over 700 members - that include Microsoft, Citrix, Fujitsu, Lucent and Progress Software - in over 30 countries. ASPIC is a global advocacy group that promotes ASPs and sponsors research projects, its goals are:

* to educate the marketplace about ASPs

* develop common definitions for the industry

* serve as a forum for discussion about the industry

* sponsor research

* foster open standards and guidelines

* promote best practices.

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By Karen Anderson