1. What is an Application Service Provider (ASP)?
Application Service Providers represent a new global industry devoted to delivering and managing applications and computer services from remote data centers to multiple users. ASPs take software applications, host them on powerful, redundant servers, make them network-accessible, and allow users to run an application directly through the web browser on their own PC or other network device. ASPs offer access to applications, as well as the associated IT infrastructure and support services, on a subscription basis.

There are many types of Application Service Providers. Some focus on augmenting in-house enterprise IT professionals with best practices, such as document management while others provide enterprise-class software services to small-and medium-sized organizations. Still other ASPs offer specialized software packages to vertical markets, such as education, manufacturing, or healthcare. Typically, the ASP charges the end-user organization a fixed, monthly fee based on application usage and services rendered, such as additional requirements in hardware, service and support, maintenance and upgrades.

Customized business applications that were once only available to the largest organizations are now available as packaged services that any small business can afford. ASPs are redefining the way companies do business in a rapidly changing Internet driven world.

2. What Advantage can an ASP Offer?

• Reduced fixed costs and lowered overall capital expenditures related to software, hardware, applications, upgrades, training, dedicated IT staff, maintenance and management
  
  
• Reduced hardware and operating system platform upgrade requirements
  
  
• Reduced IT personnel requirements
  
  
• Reduced cost of new technology deployments
  
  
• Quick deployment of applications without waiting for IT infrastructure to catch up
  
  
• Enhanced access to company information (remote & local)
  
  
• Improved performance by outsourcing IT to outside experts who are dedicated to the design and enhancement of their technology
  
  
• Increased business opportunity presented by allowing businesses to channel resources back into core strategic business initiatives
  
  
• Increased disaster recovery capabilities, network redundancy and security

3. What Application Services Does an ASP Provide?
ASPs deliver transparent software services - including the deployment, integration, access, training, management and support of applications – typically with no up-front investments in network operating system licenses, servers, people and resources, and at guaranteed service levels. ASP offerings typically encompass the following application services:

• Access - Analogous to "pay-per-view" television, ASPs deliver application access to users on demand for a fee, allowing the customer to use the application without having to license, maintain or support the infrastructure on which it runs.
  
  
• Infrastructure operations - ASPs operate the data centers where applications are hosted, providing software management, security, and disaster recovery, and business functions such as billing and usage monitoring.
  
  
• Network connectivity - These services, often delivered in partnership through local telecommunications firms or Internet Service Providers, may include connections to the Internet, operation of a Virtual Private Network, and reliability, performance and security management.
  
  
• Management service - Applications are hosted and managed at a central site, rather than each customer's site, and delivered to users in remote locations. This includes daily administrative tasks associated with running applications as well as managing upgrades and updates in conjunction with the application manufacturers.
  
  
• Support services - The ASP provides end-user helpdesk support services surrounding the use of the network infrastructure and delivers a means for application manufacturers to more effectively support the end users.

4. What Types of Applications are Available Through ASPs?
Virtually any application can be delivered through the ASP computing model. Application services range from the most complex enterprise resource planning (ERP) systems, customer relationship management solutions and vertical applications, to basic groupware, personal productivity suites, and full desktop and printing services.

Applications enable organizations to generate revenue, offer new and better services, increase levels of user knowledge, and enhance overall productivity. Organizations that can extend the reach of business applications, whenever and wherever they're needed, and however they may be needed, from wireless to the web, are developing a strategic advantage in the networked economy. ASPs make it easier for organizations to gain fast and cost-effective access to best-in-class applications in order to:

• Generate revenue through new sales vehicles such as e-commerce and customer resource management (CRM), customer billing and sales force automation applications.
  
  
• Provide better customer service through online ordering/tracking and customer self-service, call centers, order entry and help desk applications.
  
  
• Enhance organizational knowledge through intranets, email and groupware that streamline communications and collaboration, data warehousing, data mining and decision support solutions.
  
  
• Increase user productivity through personal productivity suites and contact management, enterprise-class ERP and supply chain optimization applications.

5. Explain what the Citrix technology is all about?
Citrix Independent Computing Architecture (ICA), in conjunction with Microsoft NT terminal server, allows us to provide an actual desktop environment to remote users. When you access these servers, you are connecting to them and launching the equivalent of an NT workstation. It looks like a Windows desktop with all of the normal icons. Only display information, keyboard input and mouse clicks are passed over the network…no data or programs are passed across the wire. This is why you can use your old legacy desktops without noticing any degradation of speed.

6. What are the trends and Growth Projections for the ASP market?
According to Inc. and Fortune magazines, huge growth is projected for the future. By 2004, spending on ASP services worldwide is expected to skyrocket to anywhere from an estimated $7.7 billion to as much as $22.7 billion, up from about $296 million spent in 1999.