Application Service Providers: An Alternative Model for IT Services Delivery


Application service providers (ASPs) offer an alternative way for organizations to make IT resources available to users by hosting and managing software applications and the related hardware, networking, and operating software from a remote location. The benefits of this service delivery model can include access to superior technical solutions, lower build-out risk, cost reduction, streamlined operations, easier upgrades, and better use of internal resources. Concerns about ASPs range from loss of control over applications and processes to security issues, the vendor's long-term viability, and service level performance. The purpose of this Research Bulletin is to provide background on ASPs and to help institutions understand factors they should consider when making decisions about using an ASP.

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