Yamaya Ekanayaka, Wendy L. Currie and Phil Seltsikas
This paper presents research findings from an in‐depth study on the global application service provider (ASP) industry. It explores the potential for Web‐enabling enterprise…
Abstract
This paper presents research findings from an in‐depth study on the global application service provider (ASP) industry. It explores the potential for Web‐enabling enterprise resource planning (ERP) systems for small and medium‐sized companies on a per‐seat, per‐month basis. Findings from field research suggest that, while the ASP business model offers many advantages for customers, few companies are prepared to outsource their mission‐critical ERP systems to ASPs. This situation has led to many large and small ASP vendors to re‐think their strategic business plans, with some high profile failures. Evaluating the situation from a market, organizational and technical analysis of the ASP industry, this paper argues that, while the ASP model is currently immature, the next three years will see the emergence of more clearly defined enterprise ASP offerings from key players in the software and computing services industry.
Details
Keywords
Yamaya Ekanayaka, Wendy L. Currie and Philip Seltsikas
Discusses the application service provider (ASP) model, which is emerging as a new form of application outsourcing. At present, the ASP marketplace is largely vendor driven with…
Abstract
Discusses the application service provider (ASP) model, which is emerging as a new form of application outsourcing. At present, the ASP marketplace is largely vendor driven with huge numbers of vendors offering a variety of applications to the customer. These offerings may belong to software applications such as enterprise resource planning, collaborative and vertical industry. Even though there are many benefits attributed to this model suggests that, in order to reap these benefits, customers should evaluate the offerings of the ASPs. Addressing this purpose develops a taxonomy to identify the various ASP offerings and a framework to evaluate the ASP offerings on categories such as security, pricing, integration, service level agreement, and reliability, availability and scalability. Even though this framework is in an early stage of development it intends to present existing customers with performance criteria for evaluating ASP offerings. Concludes that further empirical research needs to be carried out to refine this framework and also to find the relevance of traditional outsourcing literature to this new form of outsourcing.