Just what you needed, another TLA (Three Letter Acronym)... ASP is the newest in a long list of popular computer industry initials, and in fact has a dual meaning. For a long time, ASP has meant "Active Server Pages", having to do with on-the-fly creation of updated web pages for Internet and Intranet browsers. The other will have at least as much impact on the industry.

"Application Service Providers" act much like your present Internet Service Providers. In fact, your ISP could be your ASP, as many Internet Providers are clamoring to host applications. What does this mean?

On most networks, applications and data reside on either a server or file-sharing workstation on the local network. This could include InStar, Microsoft Word, Paint Shop Pro, etc. Although these can also reside on local drives, anything that is multi-user in nature is generally loaded from the server.

Administration of the network can be complex and expensive, depending on the number of users and applications, the backup requirements, number of locations, and type of Internet access. As these factors increase, so does the need for experienced technical help, either part- or full-time. In the largest agencies with multiple locations, this administration expense can also mean multiple salaries and continuous hardware upgrading.

Now, there is still no comparison to the savings of time and money to an agency over the lack of automation. However, the computer industry is evolving to help businesses with the need for administration and use in various locations by developing the "hosted application" scenario.

InStar recommends the ASP solution to link separate offices so that remote users can utilize the InStar software efficiently and take nearly all of the expense of administration out of the agencies' hands. ASP's like WorldPOINT can more easily setup and maintain servers, have by definition a better handle on bandwidth (the speed and volume of Internet connection needed), and has in their best interest to optimize all hardware involved.

When you remove the need for a server and shared applications from a network, maintenance is greatly simplified, since it is usually the complexity and size of memory-intensive applications or faulty server security that cause most network problems to develop.

What does all this mean? There are MANY advantages to agencies in allowing ASP's to manage their application. There is a cost and time savings in having the ASP responsible for backing up the agency data and in maintaining the server. There is a cost savings in the lack of otherwise necessary periodic upgrades of workstation hardware, as applications grow in size and complexity. In the case of multiple locations, there is no need to purchase and manage a Citrix Server, nor pay for the technical expertise necessary to install and maintain it.

Many times an agency may also "rent" the software and hosting fees, thereby saving large up-front costs and leveraging their automation decision. This can mean tens of thousands of dollars in software and hardware costs negated by a simple wide area network solution.

An example might be a business with a 50-user network needing to hire an additional certified tech, at a cost of another $70,000 per year. Instead, the can move their software to an ASP for approximately half that price annually. This company can actually save enough money in the reduction of their previously full-time technician to part-time (or outsourcing) to pay for the new business model. The firm will save $100,000 per year over their necessity of having two full time certified technicians on staff, simply by moving their software to a host site.

There must be a down side, right? Yes, there certainly can be, if the wrong ASP is chosen. Just like any business decision with consequences so important to the future of your company, many questions must be answered to your satisfaction. How well is your data being taken care of? Are backups being stored in an off-site location and how often? Do they have redundant (repeating) systems to reduce "down" time to a minimum. Are the hosting costs prohibitive? Are speed of connection or security issues? Does the ASP know your industry, your needs?

WorldPOINT believes you will like the answers to these questions with regard to their ASP service.

So, what does it take to move to an ASP? If your office currently has systems networked with Internet access, very likely you are ready for the ASP model. If not, a consultant will more than likely need to make recommendations for the easiest and most effective network and Internet connections. At that point, your application vendor, i.e. InStar, will present a proposal for your ASP business, or a WorldPOINT representative can handle your request.