Talking 'bout the ASP revolution
Bermuda-based companies Ignition and Fort Knox are sitting on the cusp of the application service provider market (ASP) revolution.
While I'm sick and tired of hearing all the mouthpieces of the world declare this and that as the next "revolution'' in the computer age, this latest one has the potential to fundamentally change the way businesses manage their systems. Perhaps it's more apt to call this an outsourcing evolution.
ASP is a form of outsourcing in which companies pay another company to manage their network and computing needs. Thus maintenance of a company's network is all managed by another company. The ASP concept goes even further in that all programs used by a company are kept on the ASP's computers. Employees access the program through a high-speed connection. The theory is that this will be a cheaper and more efficient way of managing the network and the programs.
Of course what's need is a reliable high-speed connection and a lot of trust.
Will companies trust another company to protect valuable information? Will they trust another company to quickly understand and fix problems? These are the major questions that ASPs will have to address before companies start firing their computer departments.
The development of ASP could really change the way businesses -- and employees -- use their computer networks. Actually nothing should really change up front. You would use programs the same way. But instead of screaming at those working in the company's computer departments, they'll be yelling down the phone at the ASPs answering machine. Well, let's hope not.
I think ASPs will be a boon for small businesses that can't afford to hire someone to manage their networks or look after one or two computers, but must continually rely on expensive quick fixes from someone who charges to the rescue then leaves for the next job. The ASP is the way to get that understanding ''off-the-shelf'' so to speak.
Everyone is predicting big things for the ASPs. I'm slightly sceptical of a Phillips Group report that the use of ASPs by large companies will grow to 56 percent of the market by 2004.
"As the business plans of large companies increasingly call for a need to incorporate e-commerce, internal applications will need the help that ASPs can provide,'' the report states.
The report stated that companies with 500 to 100,000 employees use ASPs for internal applications and e-commerce. Internal applications are used by employees and include internal messaging, data management, and internal business applications. E-commerce applications are used by customers of and suppliers to the business.
While I won't dispute the findings of the report, which are based on a more intimate knowledge (and some speculation) of the subject than I can hope to gather, I can't see large companies such as the ACEs or XLs flocking to embrace ASPs wholeheartedly for all their needs. These companies need their in-house computer departments to have a deep understanding of their businesses as computers and information technology are integral to the way they conduct business.
Outsourcing important areas will deplete such companies of that experience and understanding. I can see large companies using ASPs for limited, specific tasks -- the drone stuff that their computer departments will be keen to get off their backs so they can concentrate on the business of business.
Research company E-Marketer takes a more reasonable line -- that large companies will continue to expand their usage primarily for non-mission critical applications, and small- to medium-sized firms for cost-saving reasons.
If you've bought a domain name or two on the Internet, don't forget to renew.
Many domain names are now coming up for renewal and I've been trying to secure a few that have expired, either through oversight, or as I believe, because the owners have lost interest.
However the domains have not been made available, a point that made me curious until I read the story that an Alabama businessman has filed a class action lawsuit against domain name registrar Network Solutions Inc., claiming the company has been hoarding a stockpile of as many as 3 million domain names for a potentially lucrative auction. Drat! If he is successful, the suit would force NSI to make the names available to be registered through its public pool of names.
For the digital camera enthusiast there's good news that Viking Components has upgraded its CompactFlash memory cards to 256 megabytes (MB). Most of us make do with four or 10 MB cards in our cameras. With cameras now coming out at four to five megapixels (basically the higher the number the better the quality of picture), these cards will be a boon. I also hate having to switch cards while I'm shooting. Viking has also created a 192 MB card. The cards are expected to be available in time for Christmas.
Kudos to Microsoft chairman Bill Gates for putting the technology wonks in their place at the Digital Dividends conference by aptly reminding attendees that before you get the world's poor using computers, you'd better care for them first.
In his address, Mr. Gates said the world needed to tackle problems of disease and literacy as essential first steps to lifting the bottom tier of society.
He said an estimated eight million children die each year from easily treated or preventable diseases because they do not have access to vaccinations and medical care.
"Do people have any concept of what it means to live on less than a dollar a day? There's no electricity. Do they have PCs that don't use electricity?,'' he said.
Tech Tattle deals with topics relating to technology. Contact Ahmed at ahmed yelamin.com or (33) 467901474.
Warning: Bill Gates