Application Service Provider

Q: What are the advantages and disadvantages of using an Application Service Provider?  

Application Service Provider

The primary benefit of using an Application Service Provider (ASP) are the cost savings associated with reduced demands on IT personnel in not having to deploy the software upon individual computers, of not having to mind the maintenance and patching associated that desktop software demands, as well as cost savings with not having to upgrade computers and operating systems when choosing to use an ASP solution for solving key Human Resources activities.

A software company can constantly revise and upgrade the software without the customer needing to purchase new CDs or diskettes and reloading the software. The disadvantage is that if a company’s network or Internet service is down, then its employees lose access to the ASP. But in that case, because so much of today's work is dependent on internet access, including email and IM, productivity is going to grind to a near halt anyway.

Another advantage of using ASP solutions is that one can often pick and choose among modules for powerful HR processing abilities without the expensive enterprise level cost of traditional desktop or network based software. The cost savings and gains in efficiency for processing makes choosing an ASP (Application Service Provider) system the choice of many successful companies.

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