"Software as a Service" is the latest buzz phrase for web based software. Web based software providers, also known in the computer industry as Application Service Providers (ASPs) are software companies that rent their software, usually via the Internet.
Why would anyone want to rent software? Well for performing certain tasks, specially in a fluid industry like general aviation, the software as a service model offers several advantages which are listed later in this post. Although the ASP business model has been around forever, the invent of the Internet has become an excellent way of selling and distributing software.
An example of an non-software ASP business model is an airplane rental company. Individual pilots rent airplanes all the time. They rent airplanes because it is much cheaper and more convenient that owning their own airplane. For pilots that fly occasionally the cost and stress of ownership far outweigh any benefits.
The airplane rental company acts as the service provider. They take care of all the maintenance,
insurance, parking, and scheduling. The airplane is fueled and ready to go when the customer arrives. The renter pilot saves thousands of dollars and still gets to experience all of the joys of flying.
Software ASPs work in the same way. Software ASPs do all of the updates, maintenance, and technical support. The user only needs a computer with an Internet connection. This model saves the users thousands of dollars every year yet they still receive all the benefits of highly specialized and customizable software.
ASPs offer several advantages including:
- Low cost of entry.
- Short start up time.
- Pay-as-you-go.
- No need for expensive computers, servers, and other complex systems.
- No CD’s to install.
- IT personnel not required.
- Access systems from anywhere.
- Highly specialized software at low cost.
This all sounds great, right? Software as a service is great option for many companies. However there are some things to watch out for. Common pitfalls include data ownership, poor customer service and support, and lack of integration and customization. The best way to avoid the pitfalls is to ask questions.
First you need to be sure that the ASP can meet your operational needs. How to customers access the system? How are duplicate reservations avoided? How will employees use the system in day-to-day operations? These are just some sample questions you may want to ask. Although I can’t give you a complete list of operations questions because only you know your operation. However, I have provided the technical questions you should ask a prospective ASP.
Questions you Should Ask
1. How are service and support issues resolved? If you have any problems, how quickly are they resolved.
2. Who owns the data? It would seem obvious that you own your data but this is not always the case and an important question to ask.
3. Is my data intermingled with any other operators? It is very important that your data does not get mixed up with any other operators. Ideally your data will be stored in a completely independent database.
4. How secure is my data? What are the ASP’s security policies? How is your data protected at the ASP and at your operation? What technical safeguards are in place (firewalls, SSL, etc.). How are redundancy and backups handled? What is the ASPs worst case scenario backup plan? For example, if a tornado levels the building where the systems are housed, how long will the system be offline?
5. What level of integration does the ASP offer? A key aspect of an ASP is what level of integration are offered. An advantage to ASPs is the modular or pay-as-you-go model. For example you may want to start off with a simple online scheduling program, but as you company grows, will the ASP handle dispatch, accounting, etc? How easy is it to upgrade? Does the ASP offer other services to save time and money. For example an online scheduling provider may offer web site design and hosting at a very low cost since they are hosting your database anyway.
6. Can data be exported from the ASPs Software? For example you may have a in-house accounting program or you may want to export data into a spreadsheet to make financial charts. Does the ASP offer data exports? In what formats?
7. Can I get access to my database? What if a couple of years down the road you choose a new ASP. Will you be able to get a complete data set from the ASP?
8. How is the system branded? Good ASPs allow branding of their online systems. This is accomplished by allowing your logo or colors or a frames page. You want your customers to access your system from your web site. Furthermore, when they log in and then out you want it to appear seamless.
In conclusion, if the ASP can answer your well, then they are probably a good choice.
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