Application Services Provision Model

Beyond desktop and mainframe computing, adventBeyond desktop and mainframe computing, advent
of web technologies and resulting shared applicationsof web technologies and resulting shared applications
are creating new ways to meet some or almost allare creating new ways to meet some or almost all
aspects of information technology (IT) needs.aspects of information technology (IT) needs.
Concept of application service provision has come aConcept of application service provision has come a
long way since it first came on the scene in the latelong way since it first came on the scene in the late
1990s? Originally, the idea of virtual cooperation and1990s? Originally, the idea of virtual cooperation and
application sharing came from Bill Davidow, a fellowapplication sharing came from Bill Davidow, a fellow
venture capitalist and entrepreneur. What Bill foresawventure capitalist and entrepreneur. What Bill foresaw
as the future of computing is already in practice; aas the future of computing is already in practice; a
new IT business model. Hewlett-Packard and Qwestnew IT business model. Hewlett-Packard and Qwest
are among the pioneers for providing applicationare among the pioneers for providing application
services. Microsoft also allows some companies toservices. Microsoft also allows some companies to
offer its Back Office products, including SQL Server,offer its Back Office products, including SQL Server,
Exchange and Windows NT Server on a rental,Exchange and Windows NT Server on a rental,
pay-as-you-use basis.pay-as-you-use basis.
Hi-tech developments and changes at a fast rate areHi-tech developments and changes at a fast rate are
moving towards convergence of the software,moving towards convergence of the software,
information, technology carriers, and computerinformation, technology carriers, and computer
engineering. Result: IT structural designs are shiftingengineering. Result: IT structural designs are shifting
from desktop and mainframe environments towardsfrom desktop and mainframe environments towards
Internet based structures. Similarly, softwareInternet based structures. Similarly, software
applications are altering from made to order andapplications are altering from made to order and
separately owned solutions towards pre-packagedseparately owned solutions towards pre-packaged
and Web based solutions. It is in this context thatand Web based solutions. It is in this context that
ASP business model is getting more interest as a hotASP business model is getting more interest as a hot
trend.trend.
IT business model that offers end users - small andIT business model that offers end users - small and
large businesses, government organizations,large businesses, government organizations,
non-profits, and membership organizations evennon-profits, and membership organizations even
individuals -- an access to applications and servicesindividuals -- an access to applications and services
over the Internet is known as application serviceover the Internet is known as application service
provider (ASP - not to be mixed with Active Serverprovider (ASP - not to be mixed with Active Server
Pages. It also is an abbreviation of as soon asPages. It also is an abbreviation of as soon as
possible). It is sometime called software-as-a-service,possible). It is sometime called software-as-a-service,
on-demand computing, apps-on-tap or utilityon-demand computing, apps-on-tap or utility
computing.computing.
Typically, the applications are deployed by a thirdTypically, the applications are deployed by a third
party that hosts, manages, updates software basedparty that hosts, manages, updates software based
services and solutions and distributes to clients fromservices and solutions and distributes to clients from
a central location. XML and HTML processes allow thea central location. XML and HTML processes allow the
clients to interact with the software. Sometime, ASPclients to interact with the software. Sometime, ASP
also rent out the server hardware and the network.also rent out the server hardware and the network.
What is more, many ASPs, particularly enterpriseWhat is more, many ASPs, particularly enterprise
ASPs, have now started offering on site solutions inASPs, have now started offering on site solutions in
which the relevant hardware, software and functionwhich the relevant hardware, software and function
remain on the customer's site.remain on the customer's site.