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What is an application service provider (ASP)?
An ASP offers services to deploy, host, and manage applications from centrally managed facilities.
Does outsourcing to an ASP mean my company doesn't need a CIO?
No. A CIO is an integral part of a company's organization. This individual is tasked with and focused on driving the company's technology infrastructure, and ensures that their company realizes that maximum return on its technology investment. The CIO serves as the company insider that can aid the organization during its strategic planning to determine how IT can best support and drive the direction of the firm. The CIO acts to oversee the ASP and ensure the firm is making proper use of the service. Outsourcing allows the role of the CIO to shift away from operational and tactical matters and move towards strategic goals.
Who benefits from working with an ASP?
Almost any business can benefit from using an ASP. According to information provided by analyst firm IDC, more companies are turning to an ASP because of the speed in which they can assist with change, or because they are experiencing a lack of application and operational expertise, or resource availability. In the past, large companies motivated by business drivers such as mergers, acquisitions, and global integration efforts typically used outsourcing, but lately the market is shifting to mid-size and smaller companies. This is because organizations of this size typically do not have the resources to manage both in-house software solutions and exploit new technologies to help them stay competitive in an increasingly aggressive marketplace.
What companies benefit most from outsourcing their enterprise systems?
Companies most likely to benefit from outsourcing have one or more of the following characteristics:
- 25 to 2,000 users
- A need to implement a single business model across multiple plants, divisions, or organizations
- Older hardware installed
- No significant WAN infrastructure
- An IT staff of 10 or less
Your company may also benefit from outsourcing if it has any of these issues:
- A struggle to find and retain qualified IT staff to implement an enterprise-wide solution
- An IT staff currently experiencing difficulty meeting customers' needs
- Limited time to leverage new technologies to meet business objectives
- A need to improve service levels
- A desire to reduce IT capital investments
- A need to focus on the company's core competencies
What industry changes have encouraged the acceptance of ASP?
Many factors have led to the broader acceptance of hosted solutions including stability and access to the internet, secure and reliable networks, increased bandwidth at decreasing costs, standardization of the browser on corporate desktops, and availability of e-commerce and supply-chain applications.
What are market analysts saying about the ASP industry?
According to Gartner, buyers will be looking for ways to shift spending from their capital budget to the operating budget. With this, they will exhibit an increased interest in outsourcing, including business process outsourcing. The decision to outsource will not only be based on a desire to reduce current costs, but also whether a specific piece of technology, or business process, needs to be owned or operated by the enterprise. According to IDC, the demand for certain types of ASP services will be closely tied to the demand for applications software. Customers will turn to ASPs for rapid implementation of these applications and the necessary expertise they sometimes lack. Those using an ASP will continue to benefit from robust disaster recovery capabilities and improved security at levels beyond which the customer could practically afford on their own.
What specific benefits are there to using an ASP?
The many benefits include:
- Cost predictability
- Gaining the ASP's application experience
- Faster implementation of new solutions
- Guaranteed service levels
- Guaranteed performance levels
- Automatic software upgrades
- Freeing IT staff to focus on key strategic needs
- Fewer IT staffing issues
- Guaranteed uptime
- Cost-effectiveness
What are the costs involved in implementing a Oracle hosted solution?
Hosting costs are per user per month plus the cost of your communication infrastructure. Total cost of ownership is typically 15% to 35% less with outsourcing than running the software in-house.
What risks are involved with an ASP?
Downtime is always a risk, but with WTS's secure, state-of-the-art data centers, with fully redundant systems for DASD, communications, power, and air conditioning, this risk is practically eliminated. Lack of a reliable communication carrier and local area network infrastructure can also be a concern. Finally, the financial stability of your ASP should be carefully reviewed.
What factors should be considered when comparing ASPs?
There are many factors that differentiate ASPs. You want to find an ASP that acts as your partner and understands your software applications. Key differentiators include:
- The experience of the ASP in hosting your software solutions
- Vertical market expertise
- Customer references
- Support for implementations
- Customer care
- Proven software maintenance and change management processes
- Ability to provide custom application development
- The financial stability of the ASP
How long does it take to implement an Oracle hosted solution?
It depends on the software suites you license, the complexity and size of the implementation, the complementary products you need to support your business, and the implementation partner you choose. Some WTS customers have completed their implementations in less than 90 days.
Why should I select WTS over the competition?
WTS is the recognized leader in hosting JD Edwards EnterpriseOne and JD Edwards World applications with more than 5,000 live Oracle users in 17 time zones. WTS operates and manages secure in-house data centers, with multiple successful security audits, and fully-tested disaster recovery capabilities. We provide our customers with 24x7 application and technical Response Line support based upon their service level agreements. We have broad vertical industry experience with customers in AEC, distribution/logistics, manufacturing, services, energy and chemical, and packaged goods.
Does WTS have referenceable customers?
Yes, WTS has many referenceable customers. Please visit our Case Studies page for current success stories.
You may have a question about outsourcing that we did not answer. Please use our contact form to communicate with our hosting experts.
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