ASP

What does it mean?

ASP stands for Application Service Provider. They "rent" access to their software applications over the Internet or private network. If contracting with an ASP, you organization can use the software without having to purchase, install, support or upgrade. Common software application provided by ASP typically include calendar/scheduling, conferencing, e-commerce, discussion groups, file storage/exchange, databases, group collaboration suites, and virtual classrooms software. ASPs that specially serve nonprofits are a growing trend in the nonprofit sector as indicated by this list of Dot Org ASPs below.

Source: How Stuff Works

Why is it important?

Signing up with an ASP eliminates the hassles and expenses of supporting and maintaining the software. It enables the nonprofit organization to focus on what it does best: mission-driven programs, rather than software glitches. ASP pricing makes access to specialized software more affordable for smaller nonprofit organizations that will simply never be able to afford the upfront boxes and wires investment.

While an ASP might seem like a miracle solution, there are some important considerations. If your organization does not have high-speed Internet access or is using older equipment, you will most definitely need to upgrade. There are other indirect costs involved such as the ongoing phone/leased line, maintenance charges, and training. Perhaps the most important issues for some are accessibility and control. If you stop paying the monthly fee, you won't have access to the software and your data. And, the data itself is physically outside of your office.

In selecting an ASP, you must be an informed consumer. Don't be afraid to ask the hard questions to evaluate the reliability of their service and be sure to check their references. Remember, you will be trusting them your mission-critical data and you want to make they won't go out of business and they have fail-safe back up system.

Resources

Non-Profit Quarterly: Application Service Providers: The Next Horizon in Software
by Marc Osten and Michael Stein

Dot.Org List of 23 Application Service Providers for Nonprofits

TechSoup: Introduction to Application Service Providers

Reflections

Is using an ASP the right choice for your organization? Why or why not?
What software applications should you consider using an ASP for?
What is the in-house technology capacity need?
What will be your criteria for evaluation and selecting an ASP?



 


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