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Our ASP Business Model

Application Service Providers: What are they and why should you work with one?

Today every organization uses computers for critical business functions. You are probably also aware of the enormous expense that is often attached to this aspect of your business. Companies spend a tremendous amount of money to buy software licenses, whether it's a desktop application that is supplied to hundreds or thousands of users, or a server based program that may only involve a copy or two. In either case, the cost can be prohibitively high.

The cost of the licenses is just the tip of the iceberg. Applications are usually upgraded every year or two. Whether you buy the latest version or just upgrade what you have, it's going to cost money. As a result of these business realities, Application Service Providers (ASPs) have become a very important alternative to purchasing software.

In their most basic form, ASPs provide applications to customers on a subscription basis. All of the Information Technology (IT) infrastructure and support services necessary to deliver them are included in the service package. These applications are usually delivered via the Internet or a private network and ASPs typically host applications at a remote data center.

Application Service Providers (ASPs)

In the case of Safetylogic, clients use a login and password to access the application through the Internet. The site is fully secure and encrypted, so data hygiene concerns are not an issue

Some ASPs, like Safetylogic, allow you to utilize services on a subscription basis, so you only pay for as much access as you need. The subscription model also allows you to "lease and leverage" technology that cost millions of dollars and several years to develop.

The ASP model can potentially reduce IT costs by 30-60%, reduce time to market for new products and services, and more effectively allocate scarce resources. Additional benefits realized from the ASP model include:

The ability to focus on your core business, rather than IT issues .
Reduced IT costs, including hardware and staffing .
Turn-key access to powerful technology, reducing barriers to entry into new markets .
Faster implementation of new applications and technologies .
Preservation of existing investments in legacy computers, since our servers handle the intensive processing required by the application .
Easy scalability .
Access to comprehensive security, back-up, disaster recovery and support services .