Should I be using an Application Service Provider?

They’re the latest development in the web hosting industry and are gaining popularity around the world, but what exactly are Application Service Providers, and what can they do for your business? Application Service Providers (ASPs) are the latest trend in hosting, giving businesses the choice of outsourcing their externally hosted back-end applications, which allows them to save a great deal in operating costs. With an ASP, companies are able to do away with costly IT Department expansions, which can include high salaries, and expensive equipment and application purchases. The ASP takes the responsibility for developing, building, and distributing custom applications and databases for client use, giving companies another option to choose from.

How are ASP’s different from normal web hosts?

There are a number of differences between ASPs and normal web hosts, perhaps the most noticable of which is the price. ASPs are often publically traded, or at the very least well funded by loads and loads of capital. ASPs are in many ways an “elite” class of web hosts, with a professional staff in charge of developing cutting-edge software and networking facilities. Services provided by ASPs are of the highest professional quality, and utilize the latest industry technology, backed by the broadest bandwidth and most complete range of customer care services anywhere.
There is a price to pay for this level of service, however, and for most ASPs the minimum cost for services usually runs in the neighborhood of $10,000. This price tag puts ASPs out of the reach of many potential customers, but for those who can afford it, the superior quality of service will elimate all potential headaches, and in doing so, be well worth it. To put it in layman’s terms, ASPs are like a brand spanking new Mercedes S-Series Convertible, and regular hosts are like a 1980 Toyota Tercel with a fading paint job. They both perform the same function, but on completely different levels, and to completely different standards.

The competitive Web services market has caused many telcos to offer both connectivity and hosting to their clients, and for many customers, this is an extremely attractive arrangement. Not only do carrier hosts allows clients to take care of all their Internet needs in one place, but small enterprises have also found that it can be much cheaper to buy both services together, rather than paying for them separately.

However, businesses that entrust their operations to carrier hosts also take on a very real risk: they are in danger of becoming dependent on a single provider. Businesses with colocated servers may find it difficult to switch providers, and if their carrier goes down, then those businesses could be grounded for some time. For this reason, so-called “neutral hosts” have become extremely popular.

Neutral providers are full-scale colocation companies, but unlike carrier hosts, they do not operate their own IP networks. Instead, they allow clients to choose a telecommunications company - and if clients decide to change to their minds later, their hosted operations won’t be affected. Leading neutral hosting company Redbus Interhouse allows it customers to negotiate directly with providers, or, if the client prefers, Redbus can obtain a quote on his or her behalf.

For the first-time client, however, identifying a neutral hosting operation may not be so easy. Many carrier companies have tried to capitalise on this important new market by identifying themselves “neutral hosts,” when all they really mean is that they allow other carriers into their data centre - while they aggressively promote their own services. For backbone providers, the cost of connecting to a data centre can be as much as £250,000, so only a handful of truly established neutral hosting companies are able to offer their clients more than 10 or 12 providers to choose from.