THIS IS AN ARCHIVED VERSION OF THIS CONTENT.
PLEASE CLICK HERE TO BE TAKEN TO MY NEW SITE.

  Application Service Providers (ASPs) –
88 Key Questions to Ask Before You Buy

©2001 Corbin Ball Associates

Application Services Providers (ASPs) are changing the face of the meeting planning software industry – providing software as a service rather than a product.  Similar to paying a monthly charge for water or lights, software companies will lease their software and support on a yearly or a transaction basis. In many cases, these products are less costly than their “shrink-wrapped” counterparts.

There are hundreds of new meeting industry-related ASPs coming online providing a wide range of technology services including registration, budgeting  meetings consolidation, meeting management, travel management, marketing, communications automation, e-RFPs, travel, surveys, expense reporting and much more. The web browser is the common interface for access these services providing a familiar cross-platform tool for the planner, staff and clients to use.

But planners should have many questions: Will these products meet my needs? Are they robust and secure enough to replace the software I currently am using? How do I evaluate them? Will the companies still be here in a year or two?  This article will address a number of these questions and provide an extensive 88-question checklist of evaluation questions to ask.

The Future: I believe that ASPs will ultimately become the accepted way that software is distributed . The days of buying shrink-wrapped products requiring installation and tweaking on each computer and on the network will seem as old-fashioned as writing the programs yourself.  The days of paying large sums to web developers to build customized web applications will be gone. Instead, you will either lease the software on a yearly basis or pay on a transaction basis, as for example for a registration or a room night booked. There will be many potholes along the way, however. It is likely that at least half of the current “dot.com” ASPs will either be acquired by other companies or simply go out of business. The surviving companies, will drive a very different way of doing business.

Benefits of the ASP: As the business process dives into a web-based model, APS provide a number of benefits over building and hosing web applications yourself.

Reliability and Security: Many of the companies providing these services are built on very secure and multi-redundant architectures. Hosting is often done in “server-farms” where the full-time job is protecting, maintaining and backing up data.

Commonly 99+% uptime is offered. Help desk, backup, disaster recovery, security, network monitoring and remote problem solutions are included. Unless your company has a very large IS department, it would be exceedingly hard to match this level of reliability and protection.

Anytime-Anywhere Access: As these service typically rely on the web for distribution, the planner or client can access to the data 24/7 from any web browser.

Common Interface and Ease of Training: Planners and clients already have the necessary tools sitting on their computer – the Web browser. It is a familiar interface and it is cross platform  -- Macs, PCs, and large enterprise networks can use it.

Complexity: ASPs are evolving to handle very complex tasks to meet the variety of needs requested by a range clients. These development costs can be in the millions of dollars. For example, APSs handling registration can accommodate very complex, multi-day, multi-session, multi-payment programs to meet these needs. It would be very costly for a company to develop such a full-featured application on its own. Using an ASP takes advantage of the collective needs and experiences of the clients the ASP services.

Upgrades: A web year is like a dog year—very much can change in that short time. ASPs are constantly upgrading their tool set based on high volume experience. Product upgrades are included in the transaction fees and require no intervention, or tweaking the system, or reconfiguring the network on your part.

Total cost of ownership: Often times when to total cost of ownership is calculated (the software and IS support to install, maintain, and upgrade the software), an ASP model is less expensive. Typically upgrades, for example, require no changes from the client end.

However, even with the above benefits, planners should proceed cautiously. As mentioned earlier, many of providers may not be around in a year or two, so due diligence is necessary.  The following is a compilation of questions to ask and think about as you are narrowing down what would the best ASP choice for you. Parts of this list were provided thought he courtesy of SeeUThere (www.seeuthere.com) and Npower (www.npower.org).

ASP Evaluation Checklist

Vendor Qualifications and Viability

  • What is the origin of the company?
  • When it was founded? 
  • Does the company understand my industry?
  • Can they provide customer references who are similar to us in size and work?
  • Can they provide quantifiable results of success?
  • When was the last round of funding and how much?
  • How much money has been raised to date? 
  • Who are the company backers? 
  • How many employees total? 
  • How many “core service staff” (people who are most directly responsible for delivering the service you are buying) such as engineers and customer service and support?
  • Has there been recent layoffs or signs of problems at the company?

Software Development

  • Is the company’s core technology developed by internal engineering staff, or is it outsourced to partner developers? 
  • If outsourced, how does the company support the technology and respond to customer issues? 
  • Was this online service originally designed as a true ASP that can handle millions of data records and transactions simultaneously from the central server? 
  • If the company was founded as a custom software shop (often the case with traditional travel and meeting management companies) or as a PC-based software vendor, ask specifically how they have changed the original system architecture to meet the scalability demands of the ASP service model.
  • How does the company ensure quality control?
  • Does the company use a third-party solution as part of its service offerings? 
  • If so, how integrated is the entire service offering? 
  • How well does the company respond to customer issues and questions?
  • What development tools have been used to build the application?
  • Are your engineers certified on the servers, network gear and software? Is this in the contract?
  • Has the technology been recognized by third-party endorsements?
  • Can they provide a system infrastructure diagram?

Vendor Trust

  • What are the privacy policies?
  • Do they disclose the identities of their customers to other companies, or market to them themselves?
  • Do they read customers’ data?
  • What is their code of ethics regarding customer privacy?
  • Who audits compliance?
  • Who certifies it?

Usability

  • Can the web page be easily branded with company colors and logos?
  • Is the application flexible? Is it easy to add, customize and track new fields?
  • Does it automate the customer communication with automatic confirmations and other forms of email broadcasts?
  • Are these automated confirmations personalized with clients first or last names?
  • How robust is the reporting?
  • How many standard reports are available?
  • Can data be queried for specific information?

Security & Data Protection

  • What level of data security, backup and disaster recovery does the company offer to ensure integrity of your customer and event data?
  • How secure is their computing environment?
  • Who audits the company security?
  • Do I need a firewall on my site for additional security?
  • Is there a firewall protecting the database in addition to the one in front of the web server?
  • What is their exact backup routine?
  • What is their backup interval and procedure?
  • Is there offsite backup?
  • What is their access control policies and procedures to the servers?
  • What is the level of data encryption?
  • How much data could be lost in the worst case scenario? (e.g. just the current transaction / the previous hour / the previous day?).
  • What are the fail-over procedures?  How long does it take? 
  • What are their policies regarding purging of data?
  • At the time of data purges, can we receive a CD ROM with all of our data for our archive?
  • How many points of redundancy are there in the system (web server only, web server and database, web server and database and application server, etc.)?
  • How are financial transactions handled?
  • What are the security procedures for handling credit cards?
  • Are credit cards processed automatically an in real time?
  • Can multiple payment types (credit cards, checks, purchase orders) be accommodated?
  • Is secure socket layer technology used?

What tangible assurance can the company offer in terms of scalability? 

  • What is the highest level of simultaneous users successfully handled?
  • What is the highest number of simultaneous credit card transaction successfully handled?
  • What is the highest number of daily site visitors successfully handled?
  • Has the site traffic been verified by any third-party?

Contract Terms

  • How do they price their services (e.g. per user/per month, per user/per transaction, etc.)?
  • What services are included in the subscription fee (fee-set-up, helpdesk, software updates, on-line training, etc)?
  • What is the length of the contract?
  • What happens if I want to end the contract earlier than the stated length?
  • Other than a Web browser, what hardware/software, if any, is required at your company’s site?
  • What is their guaranteed uptime for the applications ( i.e. 99.7% uptime?) What happens if this service level agreement is not met?
  • Lead time:  How many days will it take between a signed contract and a customized, working registration site?  (Often this can be an important indicator of customer service level as well as the viability of the technology.  Well-designed ASP services are designed to be easily customizable and can accommodate large number of system users at the same time.)

End User Training and Support

  • What are the hours of service for the help desk services?
  • Do they provide 24x7 support for your application?
  • What support is available after hours?
  • Who provides first-line support (help desk services) for the application: you or the software vendor?
  • Is there a dedicated account manager or only call center support? 
  • Is formal product training offered?
  • Are there consultative resources available for graphic design, data management, and technical customizations?
  • What is the average wait time to reach a live person at their help desk?
  • Is there a response time guaranteed in the contract?
  • Do they provide implementation and training services?
  • If not, who does?
  • Do they provide online training courses, manuals and frequently asked questions (FAQ) documents.
  • Do these cost extra?

Exit Strategy

  • What are the exit options if I am dissatisfied?
  • What happens at the end of the contract?
  • How I will get my data back, and in what form?
  • Assuming the ASP has been providing this service for a year or two, how much data history will it return to me – all of it? or less?
  • Assuming I want to transfer to another ASP, will it agree a seamless handover with them?
  • Will it manage incoming email during the handover?
  • If so, for how long?

If you find this article helpful, please let me know by signing the Guest Book in the Contact Corbin Section..

BACK TO ARTICLES LIST