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With increasing popularity of the Web, different business models have become visible to anyone surfing the net. One of these behind-the-scenes business models that the Web has created is call the ASP, Application Service Provider. ASP's are a completely new way to sell and distribute software and software services. Several factors have led to the growth of ASP's including the high cost of specialized software and the growing complexity of software and software upgrades. Distributing huge, complex applications to the end user has become extremely expensive from a customer service standpoint and upgrades make the problem worse. In a large company with thousands of desktops, distributing software can cost millions of dollars. The ASP model eliminates most of these headaches.

The ASP model can be extremely appealing to businesses - especially small businesses and startups because it can drastically lower the costs of software and services. Metamorf looks at the ASP model from top to bottom so that the client's requirement is understood completely.

 
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Here are the common features of an ASP:

  • The ASP owns and operates a software application.
  • The ASP owns and maintains the servers that run the application. It also employs people needed to maintain the application.
  • The ASP makes the application available to customers via the Internet, either a browser or through some sort of thin client.
  • The ASP bills for the application either on a per-use basis or on a monthly/annual fee basis. In many cases, however, the ASP can provide the service for free or can even pay the customer.

Advantages of ASP's:

The ASP model has evolved because it offers some significant advantages over traditional approaches. Here are the most important advantages:

  • Low cost of entry and short setup time.
  • The pay-as-you-go model is often significantly less expensive for all but the most frequent users of the service.
  • The outsourcing arrangement under the ASP model eliminates costly head count.
  • The ASP model eliminates specialized IT infrastructure for the application as well as the supporting applications.
  • The ASP model can shift Internet bandwidth to the ASOP, who can often provide it at a lower cost.