Benefits from using an ASP

 Speed to market : the ASP already has the equipment, applications and expertise ready to provide rapid market access.

 Focus : by outsourcing application management, the customer can focus critical resources on their core business functions.

 Improved performance: ASPs can apply their vast experience to implement best IT / business practices for superior levels of availability, security, backup, disaster recovery, and support. 

 Financial flexibility: this model reduces fixed costs and lowers overall expenditures for hardware, applications and management. 

 Reduced risk: with no capital expenditure on software, hardware, and IT personnel, organizations can "test" a new technology with minimal impact to their existing environment and bottom line.

The normal pricing model for service providers is per user, per month. Analysts and vendors say that won't change in 2000, although other models, such as per server, are making headway.

Types of Hosting Services

 Collocation : The ASP hosts an organization ’s servers and applications and is responsible for all associated costs (power, lights, network bandwidth, physical site security).

 Web Hosting : The ASP provides shared or dedicated servers and applications and is responsible for the routine operations, maintenance and security of the Web site.
 

 Application Hosting : The ASP houses shared or dedicated servers and applications and is responsible for the routine operations and maintenance of the applications, including upgrades.