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In general, ASPs host computer solutions outside the company, thus rendering
it unnecessary to have an IT Department or IT Administrators because all
electronic transactions, web hosting, information routing, system development,
etc. is handled by the ASP.
- Ability to use integrated software systems without paying high up-front
costs (please refer to the benefits of an ERP system listed in the previous
question)
- Fixed cost use making it easier to budget and plan for costs
- Quick implementation
- Access to ASP services for implementation and programming
- Help desk service
- Training service
- Less extensive training requirements than having an ERP in-house
- Consulting service
- ASP-provided interfaces allow you to connect your ASP systems to the
ERP or ASP systems of another company for automated e-procurement
- To find an ASP provider, contact a large hardware distributor such
as IBM to find out to whom they sell their hardware for the purpose
of ASP systems. Alternatively, ask the sales departments of ERP
companies if they sell their software to any ASP companies that offer
service in your area.
- Lack of long-term cost-benefit utilization is prolonged
- Security risks of storing critical data outside your company (ensure
that your contract with an ASP includes compensatory provisions if the
ASP company goes out of business or loses your data)
- Possibility of a lack of ASP in you region since ASPs are an emerging
trend
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