Using a Hosted Service to Keep Up with Technology by Tamara Philbin

Chambers struggling with costly technology upgrades may consider outsourcing their membership database needs with an Application Service Provider (ASP).  An ASP extends the model of the Internet Service Provider (ISP) to host business applications, i.e. your membership applications, on a server accessible through the Internet. Outsourcing your business applications reduces the burden on internal information resources; lets organizations use new business applications faster; and enables a smoother more predictable cost model for running the applications over time.  Renting applications for a monthly fee from an ASP is the future for many organizations needing technology upgrades. Data processing has come full circle for some organizations that once used a computer service bureau for their database needs.  When costly mainframes were the only way to automate data processing, service bureaus were an option for organizations that could only afford a share of processor time from a mainframe. As PCs became more powerful and affordable the need for time-sharing scaled back. But data processing needs have expanded tremendously as organizations try to securely open up parts of their database to a vast web audience.  Organizations providing  data as web listings and accepting data input from their web audience for functions such as e-commerce are, once again, having trouble affording the technical solutions they need. Outsourcing has again become a viable alternative for technology.  With the Internet, ASPs can offer a less expensive, nonproprietary means for desktop computers to communicate with an off-site application host system.  Desktop web-browser software provides a standard way to interact with an application hosted on a web-server.  Neither the Internet nor browser software adds much cost to the outsourcing equation. The benefits of using an ASP to host your database needs are: ASP maintains the hardware required to efficiently host complex applications and removed the need for the chamber to buy, maintain and upgrade in-house hardware. The ASP can make sure the latest versions of applications are available to all users without costly site-by-site in-house upgrades. The ASP-based system requires only a browser, eliminates the need to manage client software on a desk-by-desk basis, which reduces the need for technical expertise internally. Expanding the scope of applications can be done faster, without the need to increase the complexity of the in-house technology environment. It is easier to budget for technology when the fees don't change monthly.  The basic pricing model of an outsource ASP application, which usually includes an initial setup fee plus a monthly rental fee per user, simplifies cash flow management. By using an ASP, smaller budgets can afford big-ticket applications that would otherwise be unaffordable to implement. The drawbacks of using an ASP: Access to outsource applications may be subject to influences beyond the users control such as heavy traffic on the Internet, which can slowdown applications. Although there are security measures developed, your data is less secure from malicious hackers when accessible through the Internet as opposed to a local area network with a firewall. Many applications best suited for chambers are not developed with a completely browser-based interface, although they are coming.  To work around this drawback, some vendors wanting to offer hosting has done so by using a Citrix client.  This thin client is relatively easy to install on PCs, but does cost more than accessing the completely browser-based applications. Before signing up with an ASP, consider this: Will your software run on a dedicated server or will you share hardware with others? How will the data be secured?  Do they offer a secure connection through a virtual private network (VPN) How are backups and recoveries handled? Other than a web browser, what hardware or software is needed at your site? Who provides technical support and training of the application? How does the ASP ensure upgrades and scalability? What happens if the Internet connection goes down or data is lost? Does the ASP provide clear reports detailing application access and usage statistics?