The ASP is a concept that has emerged from the outsourcing market. The model delivers a software solution to the client from an offsite location. The client does not own the application but "rents" the system, typically on a per user basis.

The ASP model provides software as a service. This significantly reduces the total cost of ownership for an organisation and enables the rapid deployment of best practice technology solutions.

Benefits

The benefits of this model are simple:

1. Rapid Deployment as the system is already up and running and only minor configuration is required for a new client site to go live.
2. Cost savings
   • No additional hardware or software needs to be purchased by the client.
   • No additional IT technical support is required to install or maintain your system.
3. Automatic upgrades and new functionality delivered on a regular basis, without the need for your IT department to manage the transition and upgrade process.
4. The service is treated as an operational expense rather than capital expenditure.
5. An ASP offers a low risk option for adopting new software due to the small cost of implementation and rapid deployment of the technology.

The major benefit of the ASP model is its low cost of ownership. If comparing an ASP solution to an in-house supported solution the ASP will over time be the most cost effective solution that a company can adopt. As the chart below shows the hidden costs of owning software make packaged software a less viable solution over time.

When considering the purchase of software consider the hidden costs associated with purchasing software. the table below provides an indicative list of possible costs that will need to be factored into your buying decision.

Cost Items	i4-talent	Packaged Software
Annual Service Fee
Initial License
Maintenance Fees
Additional Hardware
Peripheral Software
Business Requirements Development
Technical Installation
System Configuration
Testing
Maintenance and Support
Upgrade Management