| ROI Manager for Application Service Provider |
ASPs use a "pay as you go" pricing model to deliver application functionality and associated services across a network to multiple customers. The applications supported by ASPs are typically standardized for specific user types or industries, and are not customized. In some ways, the ASP service delivery model is just a new form of application outsourcing (i.e., a variant of the old mainframe, time-sharing model) with the attendant infrastructure services required to deliver the full life-cycle set of application infrastructure and associated services, including consulting, implementation, integration and on-going operations. However, the emergence of the ASP market signifies a major computing revolution, with the power to dramatically redraw today's IT ecosystem and greatly affect both software licensing models, and application and networking architectures - in addition to vendor strategies. Eventually, enterprises of all sizes will find the ASP model worthy of serious consideration.
To appreciate the attractiveness of the ASP model, it is important to understand the ASP value proposition. Essentially, ASPs provide end-to-end service offerings encompassing the implementation, customization, and ongoing operation and support of application functionality, with the complete infrastructure delivered to the customer for a flat monthly fee. Other attributes of the ASP model include:
- Applications-in-a-box, which enable faster ramp-up time and lower cost
- No up-front capital costs, which may lead to lower ongoing TCO
- Full life-cycle application services
- Predictable and simplified pricing
- Little or no customization
- Ongoing access to skilled resources
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