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Starting up as an Application service provider
- Thread starter MCSLOY
- Start date
GlenJohnson
MIS
I would say first you start with a lot of money. No, just kidding. Out of curiosity, why would you want to be an ISP> There's so many of them out there now, it's not even funny. From a google search start your own isp I got...
Good luck.
Glen A. Johnson
Johnson Computer Consulting
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Good luck.
Glen A. Johnson
Johnson Computer Consulting
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GlenJohnson
MIS
Sorry, misread it as ISP, not ASP. Ignore.
Glen A. Johnson
Johnson Computer Consulting
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Glen A. Johnson
Johnson Computer Consulting
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For genomon:
For MCSLOY:
First start with an application, preferably something that you developed yourself, in-house.
I used to work for one of the larger global ASPs, and it's a fairly competitive business. Most companies are reluctant to outsource application hosting because their applications are the backbone of their business. If they host applications in-house and they lose internet connectivity, most business can still keep going for awhile in some fashion. If their applications are hosted at a third-party site and their links go down, they're dead in the water. So you'll find that most companies require very strict SLAs, uptime guarantees, etc.
You will need secure, highly redundant datacenters with LOTS of redundant connectivity. You will need networking and server teams with a great deal of expertise to allow you to troubleshoot and resolve problems within the SLAs. You will need application specialists in the applications that you host for similar reasons. And once you have all that, you'll need a second site to function as a hot or warm DR site. You'll probably also have to get your company ISO certified as well. Those are just the basics.
Basically, if you have to ask how to start an ASP then you've got approximately zero chance of actually pulling it off (successfully).
________________________________________
CompTIA A+, Network+, Server+, Security+
MCP, MCSA 2003
For MCSLOY:
First start with an application, preferably something that you developed yourself, in-house.
I used to work for one of the larger global ASPs, and it's a fairly competitive business. Most companies are reluctant to outsource application hosting because their applications are the backbone of their business. If they host applications in-house and they lose internet connectivity, most business can still keep going for awhile in some fashion. If their applications are hosted at a third-party site and their links go down, they're dead in the water. So you'll find that most companies require very strict SLAs, uptime guarantees, etc.
You will need secure, highly redundant datacenters with LOTS of redundant connectivity. You will need networking and server teams with a great deal of expertise to allow you to troubleshoot and resolve problems within the SLAs. You will need application specialists in the applications that you host for similar reasons. And once you have all that, you'll need a second site to function as a hot or warm DR site. You'll probably also have to get your company ISO certified as well. Those are just the basics.
Basically, if you have to ask how to start an ASP then you've got approximately zero chance of actually pulling it off (successfully).
________________________________________
CompTIA A+, Network+, Server+, Security+
MCP, MCSA 2003
- Thread starter
- #6
So all that is required is a lot of money and lot of expertise! I have tried explaining this to my boss but all he can see is the possibility making a lot money. He thinks that 1 server at the back of the shop is all that is required. Time to get into the real world! Thanks for all your feedback.
Some years back there was talk that almost all business software was going the route of ASPs. Even the ERP software market has some of this, most notably Netsuite. ACCPAC is another ERP product that "bet the farm" on the ASP model.
ACCPAC has since been acquired by Sage Software and has gone back to 100% self hosted on your internal SQL and application servers.
The flaw in the model besides what kmcferrin pointed out is this: Do you really want all your customer lists, sales history, Product specifications, recipes, bills of material, vendor lists and other proprietary info housed off site?
This alone will turn many people off the model, no matter how slick the technology is.
Some people are so turned on by the fact that they CAN do something with technology, that they never stop to think if they SHOULD do it.
This is where the ASP model fails IMHO.
Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports
"What version of URGENT!!! are you using?
ACCPAC has since been acquired by Sage Software and has gone back to 100% self hosted on your internal SQL and application servers.
The flaw in the model besides what kmcferrin pointed out is this: Do you really want all your customer lists, sales history, Product specifications, recipes, bills of material, vendor lists and other proprietary info housed off site?
This alone will turn many people off the model, no matter how slick the technology is.
Some people are so turned on by the fact that they CAN do something with technology, that they never stop to think if they SHOULD do it.
This is where the ASP model fails IMHO.
Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports
"What version of URGENT!!! are you using?
Agreed. The one place where ASPs still make sense is with small companies who don't have the technical resources to host applications in-house. If you have an app that people want to use then you can offer turnkey solutions that you host and support for a fixed monthly fee. Customer look at it like a utility. Of course, then you have to be able to provide utility-grade service too.
Most of the ASPs that I have seen who hosted 3rd-party applications all went bust when the Internet bubble burst. The ones that are still around are in two categories:
1. They wrote their own application and host it to make life easier for their customers. Salesforce.com is a great example here.
2. They are a large ISP/web hosting company that is trying to break into the ASP business by offering hosted commodity services (Exchange, Lotus Notes, etc).
________________________________________
CompTIA A+, Network+, Server+, Security+
MCP, MCSA 2003
Most of the ASPs that I have seen who hosted 3rd-party applications all went bust when the Internet bubble burst. The ones that are still around are in two categories:
1. They wrote their own application and host it to make life easier for their customers. Salesforce.com is a great example here.
2. They are a large ISP/web hosting company that is trying to break into the ASP business by offering hosted commodity services (Exchange, Lotus Notes, etc).
________________________________________
CompTIA A+, Network+, Server+, Security+
MCP, MCSA 2003
FYI: The trendy new name for ASPs is: SaaS
Stands for "Software as a Service"
And the advice above is right on. When a customer rents your software, their business is depending on you being able to run the servers for them. From the customer's standpoint, what they want to know is "Can I access the app anytime I want to?". In otherwords, availability is key.
If your server is under someone's desk (which is how one SaaS company that I worked at started out), you have to watch out that someone doesn't kick the network cable loose. System Operations becomes your primary focus -- the app could be something as worthless as "We ZIP your files for you over the internet!", and as long as the service is there when they need it, you're golden -- they'll keep sending in their monthly checks.
You also need to think about the full customer lifecycle. Not only do you need to make signup easy, but you need to make their departure easy, too. Recall that *you* have their data, and when they leave, they're going to want it back. So make exports easy & reliable. Otherwise you'll get nasty letters on legal-firm letterhead. :-(
Chip H.
____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first
Stands for "Software as a Service"
And the advice above is right on. When a customer rents your software, their business is depending on you being able to run the servers for them. From the customer's standpoint, what they want to know is "Can I access the app anytime I want to?". In otherwords, availability is key.
If your server is under someone's desk (which is how one SaaS company that I worked at started out), you have to watch out that someone doesn't kick the network cable loose. System Operations becomes your primary focus -- the app could be something as worthless as "We ZIP your files for you over the internet!", and as long as the service is there when they need it, you're golden -- they'll keep sending in their monthly checks.
You also need to think about the full customer lifecycle. Not only do you need to make signup easy, but you need to make their departure easy, too. Recall that *you* have their data, and when they leave, they're going to want it back. So make exports easy & reliable. Otherwise you'll get nasty letters on legal-firm letterhead. :-(
Chip H.
____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first
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