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ASPs

-How ASPs Work

The Web and the Internet began to really heat up and receive significant media exposure starting around 1994. Initially, the Web started as a great way for academics and researchers to distribute information; but as millions of consumers flocked to the Internet, it began to spawn completely new business models. Three good examples of innovative models include:

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Advantages of ASPs

Another important factor leading to the development of ASPs has been 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 where there may be thousands of desktops, distributing software (even something as simple as a new release of Microsoft Word) can cost millions of dollars. The ASP model eliminates most of these headaches.

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Defining an ASP

ASPs tend to be made fairly complex and confusing in the media, but people have been using forms of the ASP for centuries. By looking at one of these existing models and seeing how simple they are, you can gain a great deal of knowledge about Internet ASPs. An airline is a classic example of a non-Internet ASP, and is extremely simple to understand. It therefore makes a great starting point into your understanding of ASPs.

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Defining an Internet ASP

Even though airlines fit the model for an ASP, we generally do not refer to airlines as ASPs. The terms "ASP" and "Application Service Provider" are applied specifically to companies that provide services via the Internet. In most cases, the term ASP has come to denote companies that supply software applications and/or software-related services over the Internet.

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Examples of ASPs

ASPs come in all shapes and sizes. One way to understand ASPs is to look at them from several different angles using real-world examples. Simple ASPs If you were to start a small business today, you would probably begin by contacting three or four extremely common and largely unnoticed ASPs: *

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Things to Ask a Prospective ASP

ASPs today offer nearly any service a company might need. Many of these services (like e-mail, Web hosting, ad serving, invoicing and bill delivery, payroll, etc.) are mission critical. It is therefore important to make sure that the ASPs you choose will handle your information and relationship in a mission-critical way. Here are a set of questions you should ask any ASP: *

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