Application service providers

An application service provider (ASP) is a company that delivers applications, or software, through the Internet and charges a monthly fee. Traditionally, in purchasing software, you physically receive a CD, and you install it on your hard drive or on your office's server. ASPs don't operate this way. They deliver software as a monthly service and use the Internet as the medium.

Here's an example: Many companies use QuickBooks or Peachtree as their accounting software. Today, there are ASPs, which offer web-based accounting packages that businesses can subscribe to. So instead of using an application that runs on your own desktop, you could login via the Internet and use a web-based application to perform tasks online, such as entering bills or cutting checks.

The benefits of using a web-based application through an ASP include:

• Your company is not responsible for the upkeep of the service provided. You save money and eliminate the hassle that comes with support, maintenance, and upgrades.
• It's web-based so your organization will have access to the software from anywhere.
• The risk of a bad technology investment is drastically reduced.
• You are generally guaranteed better application availability, better data security, more frequent data backups, disaster recovery, and basic, centralized technical support.
• If you're a small business, you'll be able to rent software that might otherwise be impractical or unaffordable.
• You'll have more time, money, and energy to focus on business issues rather than IT concerns.

Software hosting

Just like ASP, software hosting will generally provide you with all of the benefits listed above. However, there is a difference. When a company decides to hire an outside provider to manage and run a piece of software that could have been installed and run onsite, it's referred to as software hosting. "Hosting" means that the software has been loaded on the provider's equipment and is running from their physical location as opposed to the client's location.

Here's an example: Many organizations use Exchange Server as their email management software. Today, there are companies that will host Exchange Server as a service. You don't have to purchase the software, manage the server, or setup new users. The software runs at the provider's location. They manage everything and users connect via the Internet or private connection. You pay a fixed monthly fee.

Software hosting vs. ASP

Software hosting differs from traditional ASPs because the applications are different. Similar to a software vendor, an ASP will generally write and maintain its own proprietary applications, such as an accounting application or a human resources program. No other company can sell that application nor would you be able to purchase the software to run it onsite. Software hosting generally applies to software that can be installed onsite, for example, Microsoft applications or Siebel.

Where does External IT fit in?

External IT is a cross between a software hosting company and an IT outsourcing firm. We deliver value by offering small and midsized businesses a superior way to use technology altogether. For businesses with approximately 15 to 500 computer users, we deliver all of the benefits of ASP and software hosting and more.

External IT provides your organization with all of the functions and stability of a Fortune 500 IT department, including a secure off-site Data Center, high-performance hardware, total IT management, an outstanding help desk, advanced security systems, access from anywhere, disaster recovery, and an expert staff.

What is External IT?