Application service providers: Market and adoption decisions

Document Type

Article

Publication Date

7-1-2010

Abstract

An innovative form of IS outsourcing, application services provision (ASP), provides applications to multiple entities from its data center across a wide area network. The market supports various types of ASP, but all share the same basic characteristics that include online service delivery, usage-based payment, and one-to-many service model. ASP can be categorized on the basis of market focus and application characteristics such as pure ASP are companies whose major business is online hosting services. Pure ASP either purchase specific software licenses or partner with software vendors to lease their own applications or solutions to clients. Another class is independent software vendors (ISV), which are software companies that develop and host their own software applications. Several factors need to be considered while adopting ASP that includes examining closely the uncertainty in the internal environment and carefully consider the trade-off between the benefits of adopting an ASP against increasing vendor dependency.

Publication Source (Journal or Book title)

Communications of the ACM

First Page

113

Last Page

117

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