What is Hosted Application services?
A Hosted Service Provider (xSP) is a business that delivers a combination of traditional
IT functions such as infrastructure, applications (Software as a Service), security,
monitoring, storage, Web development, website hosting and email, over the Internet or
other wide area networks (WAN). An xSP combines the abilities of an application service
provider (ASP) and an Internet service provider (ISP).
This approach enables customers to consolidate and outsource much of their IT needs for
a predictable recurring fee. xSPs that integrate Web publishing give customers a central
repository to rapidly and efficiently distribute information and resources among employees,
customers, partners and the general public.
Hosted Service Providers benefit from economies of scale and operate on a one-to-many
business model, delivering the same software and services to many customers at once.
Customers are charged on a subscription basis.
As access to the Internet becomes more widespread with faster, more reliable and 'always on'
connections becoming the norm the growth of applications using the hosted application model continues to expand.
Although hosted applications will not suit every situation, or every customer,
they offer many individuals and organizations, as well as the application manufacturers'
themselves, considerable benefits over the locally installed application.
A hosted application, also known as Internet-based application, web-based application,
online application and Application Service Providers (ASPs) are software applications
where the software resides on servers that are accessed through the Internet instead of
the more traditional software that is installed on either a local server or on individual PCs.
The thin client concept is nothing new but advances in Internet connectivity have allowed
the application to move from a local server to a server on the Internet.
An example of hosted applications would be Salesforce.com that provides customer
relationship management facilities, Netsuite offering all-in-one business management
applications and SurveyGalaxy.com that provides their customers with an enterprise
survey and questionnaires application.
What Are The Benefits?
Reduced costs, instant deployment, easier to maintain and reduced
administration are among some of the main benefits.
Low Maintenance
With hosted applications the hardware and software is the responsibility of the
vendor with the client only having to maintain access to the Internet. As there
is no software to download a hosted application can be made instantly available
across an entire organization even where the organization has multiple regional
and international offices.
As there is no software the considerable time and resources required for
periodic updates is also completely eliminated.
Reduced Cost
The need to license software through a 'per use,' 'per concurrent user,'
'per server' or 'site' license has been eliminated. Although some hosted
applications still do charge 'per user' many have taken the opportunity to
charge on a 'usage' and/or 'period' basis meaning that the customer does not
have to estimate the number of licenses that will be required, nor install and
pay for full licenses that may only be used by some employees occasionally.
This hosted application model also allows the smaller organization and sole
trader access to applications written using advanced software development tools
and that utilize sophisticated database technology and high-end servers.
The capital investment of the hardware and software as well as the security,
backup and server maintenance cost are all the responsibility of the vendor.
Minimal Risk
Many hosted applications require no long term commitment from their customers.
New customers! can often test hosted applications either through a free
introduction offer or with minimal risk using a Pay-As-You-Go model. If after
trialing the hosted application the customer finds it unsuitable then they can
simply stop using the service.
Access
Because the application software and the data is stored on the Internet server
the application and data is available to the authorized client once they have
logged on from anywhere there is Internet access. The customer can now work
anywhere in the office environment, from remote offices or from their home
or hotel without the need to download their work or synchronize with
portable devices.
Integration
For organizations that have legacy systems from different suppliers running
different operating systems the hosted application will provide an integrated
solution to any system that supports a standard Internet browser including
Windows, Unix and Macs.
Support
The hosted application vendors benefit by not having to maintain multiple
version numbers or individual maintenance and licensing agreements. New
updates are installed centrally negating the need for expensive roll outs.
For many applications the need for version numbers is eliminated as updates
are made incrementally bringing the benefits to the customer without having
to bundle new features up into a new periodic version release. In some cases
a user can request a new feature in the morning that can be developed, tested
and deployed globally by the afternoon.
The Concerns
Internet access
New communication technology is able to bring high speed Internet connectivity
to more and more remote places but there are still some regions where internet
access is limited or not available.
In some cases such as mobile workers although high speed Internet connectivity
is available the cost both in terms of connectivity charges and equipment may,
at least in the short term, prove to be prohibitive.
Security
As with everything to do with the Internet security is a justified concern.
There is no simple \one size fits all\ solution to the security issue and a lot
will depend on the specific hosted application and the nature of the data.
With online banking and shopping becoming common place the vendor should be
able to provide their clients with sufficient confidence that the data is
secure and that any private information remains private.
Hosted applications will normally operate a login procedure ensuring that only
those that are authorized have access. The more sensitive the data, the more
sophisticated the login procedure.
A good data host will strictly enforce the stated wishes of their customers and
ensure that data is not available or released to anyone that is not legally
entitled to see it and they will adopt the latest security measures available
to prevent unauthorized access.
There may be some areas such as automatic log! ins from known PCs and the use
of cookies that although they! don\t necessary represent a significant risk
could present a risk under certain circumstances, such as gaining access to a
private account through the automatic login using an unattended PC. Although
strictly speaking the customer\s responsibility the customer should be made
aware of the risks so that they can take action to safeguard their own system.
Although security is a concern in some circumstances private data may prove to
be more secure than it would be on a private network with less sophisticated
security measures or in an environment where there is a risk from within.
Vendor Lock-In
As with all software applications there is a risk that a customer could become
locked-in to paying costly monthly subscriptions to maintain access to their
historic data. To counter this some applications will allow the data to be
downloaded or allow customer to maintain access to their data for a reasonable
time free of charge.
Control
Unlike! a local application the hardware and software is under the control of
a third party. This is a justifiable concern although not too dissimilar to the
telephone provider supplying and maintaining the communications equipment and
there are considerable incentives for the vendors to ensure high availability
and reliability since their business depends on it.
In Summary
What Are Some Benefits of Hosted Applications?
- No vendor installation or upgrades required
- Low start-up costs
- Minimal Risk, no long term commitment
- Backups and viruses responsibility of the vendor
- Hardware and software server maintenance vendor\s responsibility
- Investment in local hardware & software reduced
- No need to synchronized data with multiple devices
- Access to data available globally through any internet connection
- Reduced software licensing costs
What Are Some Disadvantages
- Lack of Internet availability
- Security
- Possibility of vendor lock-in
How to partner With Greyhound Technologies?
It’s simple! Just contact us to discuss the Greyhound Hosted Applications program.
