
We encounter a range of Frequently Asked Questions (FAQs) about
the Hosted/ASP solution and its many benefits. Below is a list of many of
the most common questions and their answers. Please contact us if
we can be of any assistance.
What is an ASP?
What are the benefits of using an ASP?
How does an ASP work?
Why should I consider an ASP or Hosted solution for my IT?
What’s the difference between Hosting and ASP?
Won't it cost me more?
What if I’ve already invested in IT equipment?
We already own our MS Office/Exchange/NT etc licenses. Why would
I switch to an ASP environment?
What applications can I access and how can I access them over the
Internet?
Isn’t Citrix very expensive? Why can’t we just use
Windows Terminal Services?
Why should I pay around $30 per month for Microsoft Office when
I can purchase it for a few hundred dollars?
Wouldn’t it be cheaper if I just employed extra IT staff
or contracted the labour I need?
Will my applications perform as fast and reliably as when they
are on my LAN?
How will my remote users connect?
What will happen if my telecomms link goes down?
Will the service be reliable?
I’m used to having my servers here…. why should I move
them? Won’t I lose control of my systems?
What will happen to my data?
What about security? Will my systems be safe when they are not
sitting in my building anymore?
Will my data be backed up and my system virus protected etc?
Will I need to make my IT staff redundant?
Why is ExpressApps the right ASP for my business?
What should I do next?
What is an ASP?
An ASP is an “Application Service Provider”. Their
business is to deliver and manage applications and computer services
for delivery to multiple users via the Internet or a private network.
This provides an extremely cost effective solution to the demands
of systems ownership: high up-front capital expenses, implementation
challenges and a continuing need for maintenance, upgrades and customisation.
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What
are the benefits of using an ASP?
Focus: by outsourcing application management you can focus critical
resources on improving the performance of your core business processes.
- Best Practice: an ASP can apply their greater experience and resources
to implement best IT practices for superior levels of availability,
security, backup, disaster recovery and user support
- Lower Cost: the ASP model lets you take advantage of the economies
of scale, scope and skill of a dedicated IT organisation.
- Rapid Deployment: an ASP has already made the investment in equipment,
infrastructure, relationships and expertise to enable rapid deployment
of your applications to where you need them.
- Reduced Risk: with little or no capital expenditure on new software,
hardware and IT personnel, organisations can “test”
a new technology or application with minimal risk.
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How
does an ASP work?
An ASP operates a data centre, including servers, firewalls and
other equipment, on which software applications are installed and
made available for use via the Internet or private network connection.
A customer typically contracts with an ASP to provide a certain
suite of applications (eg an accounting package, mail and Microsoft
Office) to an agreed number of end-users (from 5 to 500 or more)
connecting from a number of locations (eg head office, some branch
offices and even mobile workers). The ASP makes these applications
available via a secure web page and assists the customer with obtaining
the appropriate telecommunications connections at each of their
locations to enable authorised end-users to access the required
applications when needed.
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Why
should I consider an ASP or Hosted solution for my IT?
You should consider a Hosted and/or ASP style solution whenever
there is a “Breakage Event”… a time when there
is a known need to invest in upgrading your IT infrastructure… typically
driven by a change in the business (e.g. acquisition, major software
upgrade, major operating system upgrade etc.).
Customers that will benefit most from an ASP/Hosted solution include
those that:
- Are aware of the problems associated with investing in and managing
an increasingly complex IT environment.
- Are concerned about the capital investment requirements to maintain/upgrade
their IT in order to stay competitive.
- Are concerned about the costs and complexity of managing and connecting
a multi-site environment and/or have to deal with remotely connected
users.
- Do not have the dedicated IT staff and/or do not have the breadth
and depth of skills required to manage their own IT environment.
- Your business may be the ideal candidate for an ASP/Hosted solution
if you are:
- Rent aware (you already rent or “pay per use”/outsource
key aspects of your business today).
- IT Value focused (you focus your IT on the achievement of business
value and competitive advantage rather than treating it as a grudge
expense).
- Multi-Site (you already face the issues of remotely connected users).
- “Right Sized” (typically you have at least 50 users
– i.e. enough to require more sophisticated IT, and fewer
than 500 users – i.e. your user base is insufficient in size
to economically justify your own internal hosted solution).
- Have an imminent “Breakage Event” (you are currently
facing a major IT investment decision).
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What’s
the difference between Hosting and ASP?
A Hosted solution is where the customer purchases and owns the
equipment and/or software licences but chooses to have the equipment
installed and maintained at a Data-Centre/Hosting facility. Typically
this involves paying an installation and set-up fee plus a regular
monthly maintenance fee in addition to the initial outlay for the
capital purchase. The benefit is that you retain the ownership of
your systems and obtain the best possible engineering services whilst
still taking advantage of the shared infrastructure (Firewalls,
Routers etc.) of the Host. The downside is that you must still make
a capital purchase and upgrades and/or expansion may require further
purchase decisions and capital approvals.
An ASP (or Application Service Provision) solution involves little
or no capital outlay or purchase by the customer. You simply rent
the applications and operating environment needed for a fixed cost
per user per month plus a small set-up/installation fee. The benefit
is that you only pay for what you need/use and take full advantage
of the additional infrastructure and redundancy offered by your
service provider. The monthly rental fee will normally cover any
upgrades or expansion required and expansion/addition of users is
generally quick and seamless. While you do not “own”
the equipment on which your applications reside (which also means
it is not clogging your balance sheet) you do have full control
of your IT.
In practice we find that most customers typically opt for a hybrid
type solution. Business critical applications can still be purchased
from the relevant Software Vendor and either hosted on dedicated
equipment or delivered via an ASP model. Other items such as Exchange/E-mail,
Anti-Virus protection and Office Applications can be either hosted
or delivered via an ASP solution, depending on requirements.
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Won't
it cost me more?
If an ASP/Hosted solution is right for you then it will cost you
less, in some cases significantly less, than you are spending today.
See our indicative calculation for details
How much does your IT cost you today and is it up to scratch? According
to Gartner only about 65% of the true cost of IT is directly accounted
for, with some 35% being indirect and often invisible in the Australian
Market [1]. Your visible IT costs include the capital cost, real
cost of admin and technical staff plus ongoing maintenance etc.
Invisible costs include lost productivity due to downtime and/or
antiquated and slow systems, as well as lost time due to end-users
being involved in problem solving etc. (eg clearing printer jams).
There is the cost of maintaining and powering your server room.
And also the time and cost involved in management: Do those back-ups
get done when they should? Are you sure your Anti-Virus protection
is up to date? When was the last time you checked your Firewall?
Are you really in control of your Internet access and e-mail usage?
An ASP/Hosted solution can deliver savings in IT costs of up to
50%. And you can also be sure that back-ups are done regularly,
you are protected against viruses, your systems are secure and under
control. The reasons are simple. When you invest in and manage and
maintain your own IT you must invest in capacity that you only occasionally
need and there is little opportunity to achieve economies of scope,
scale and skills. With an ASP/Hosted solution you invest only in
what dedicated resources you need and for anything else pay only
for what you use. In addition you are able to access the economies
of scope, scale and skills that an experienced and dedicated IT
specialist business can provide. Your IT staff spend less time fighting
fires and more time adding value to your business and your end-users
experience productivity gains and spend less time involved in problem
solving.
Our aim at ExpressApps is to provide our customers with a Calais
(not a Rolls-Royce) level of service. Which means you experience
some of the best IT services available for an affordable price
After all, what business are you in? Just as most companies today
use external logistics and freight companies rather than own and
manage their own trucking fleet, so you can lower your IT expenditure
and get better service.
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What
if I’ve already invested in IT equipment?
If you’ve recently invested in new IT infrastructure then
you may still find that Hosting is a viable and cost-effective solution.
For an ASP type solution we would be happy to discuss an arrangement
(depending on the age and type of equipment) where we purchase the
equipment from you for its written down book value in return for
a reduced monthly rental.
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We
already own our MS Office/Exchange/NT etc licenses. Why would I
switch to an ASP environment?
If you have recently purchased a full set of the latest version
of Microsoft licenses including Software Assurance we recommend
that a Hosting solution be considered. However we typically find
that many customers have a hodge-podge of licences, often requiring
the support and maintenance of different operating systems and versions
of MS Office etc. There are many advantages to an ASP style solution
for your Microsoft licenses, including lower overall costs, reduced
downtime and more efficient usage of IT.
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What
applications can I access and how can I access them over the Internet?
Using the latest technology provided by Citrix and Microsoft enables
appropriately skilled and qualified ASP/Hosting Providers to publish
virtually any application on a web page for secure authorised access.
Customers can then access these applications from anywhere on the
Internet. All that is needed is an Internet connection and a standard
web browser. Presentation of applications and access to data is
customisable at an end-user level… so each person can run
and access only what is authorised.
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Isn’t
Citrix very expensive? Why can’t we just use Windows Terminal
Services?
Citrix provides many advantages on top of the benefits of Terminal
Services. These include faster performance, better bandwidth utilisation,
much better printer management and ability to manage user connections,
logins and security etc. Citrix also supports a much wider range
of operating system environments on the client device (PC, laptop
or terminal), including Unix, Mac and Windows 16-bit. The effective
cost of using Citrix adds approximately $15 per user per month,
which adds up to great value.
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Why
should I pay around $30 per month for Microsoft Office when I can
purchase it for a few hundred dollars?
The real cost of Microsoft Office (standard) (excluding hardware
maintenance and support) is $736 plus 28% for 2 years Subscription
Advantage…a total of $942…equivalent to over 30 months
rental. And this does not include the cost of capital (which at,
say 10%, makes the real cost around $1,100…equivalent to 3
years rental). Even an OEM licence (only available with the purchase
of a new PC or laptop) costs you around 2 years rental. In addition
when you “buy” licences you must invest in your predicted
capacity… i.e. you must purchase as many licences and the
servers etc to meet your maximum predicted demand. With an ASP type
solution you pay only for what you use each month…so in quiet
periods you pay less.
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Wouldn’t
it be cheaper if I just employed extra IT staff or contracted the
labour I need?
Even if you could find a suitable IT staff member, what is their
real cost and will they have all the skills required to maintain
a complex IT environment? (Today the basic list includes experience
with Servers, PCs/desktops, Windows NT/2000 operating system, Windows
2000 Server and Active Directory, Mail (eg Exchange) Databases,
Routers (eg Cisco Configuration), Switches, Firewalls, Anti-Virus,
Internet, Citrix/Terminal Servers, Applications etc.) And what do
you do when they are away on leave/training or tied up elsewhere?
An ASP/Hosted environment gives you access to a team of dedicated
and expert IT staff only when needed whose job is to make your experience
seamless. How many additional expert resources will you need to
help manage your own IT infrastructure on your site? Do you need
1.33 people one month and 2 people the next? An ASP/Hosted solution
reduces the cost of labour (e.g. no travel time/cost and more efficient
response to problems) and provides a more seamless experience so
you can focus on what you do best…running your business.
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Will
my applications perform as fast and reliably as when they are on
my LAN?
In some cases they will run faster, depending on the current desktops
you use and the type of telecommunications connection you use. With
an ASP/Hosted solution running Citrix all the application execution
takes place on powerful, load-balanced servers at our Data Centre.
Your PC only receives screen updates and sends keyboard strokes
and mouse movements. In a typical LAN environment your PC carries
out much of the application execution, which can often overload
it.
Our experience shows that allowing 20Kbps per concurrent end-user
connecting is more than sufficient for most customers…. so
a typical customer site of 25 users needs a committed bandwidth
of less then 500Kbps (typical of a quality business grade[2] 1.5/256
ADSL connection today).
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How
will my remote users connect?
Via the Internet or dedicated link. Under an ASP/hosted solution
you can do away with costly direct dial-up connections and allow
your remote and mobile users to connect to your applications via
a secure internet interface from anywhere in the world on any client
device.
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What
will happen if my telecomms link goes down?
Modern business-grade telecommunications data links are extremely
reliable. Our experience shows that careful selection of the right
telecommunications service for your requirements produces extremely
reliable service, probably fewer outages than you experience today
with your servers and equipment on-sit. Depending on your business
tolerance to downtime differing levels of redundancy, including
telecommunications, can be arranged.
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Will
the service be reliable?
Research shows that the major causes of system outages (40%+) are
due to the application and the operating system, typically due to
poor system maintenance or software application updates being installed
without adequate testing.
With an ASP/Hosted solution the systems are constantly monitored
and maintained and software updates are controlled and tested prior
to release. We maintain your applications on a fully load balanced
Citrix Server farm and all your data is secure on RAID-5 disks.
This ensures a high degree of reliability, which is supported by
an appropriate Service Level Agreement.
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I’m
used to having my servers here…. why should I move them? Won’t
I lose control of my systems?
Ultimately this comes down to a question of what business are you
in. An ASP/Hosted solution is focused on ensuring that the applications
and data that your people need to run your business are available
and performing to expectations for the lowest possible cost. This
means they can focus on doing what they have been employed to do
rather than be hamstrung by IT.
Your control is ensured by thorough Service Level Agreements,
which obligate your service provider to deliver what you need to
run your business without you having the headache of having to manage
the hardware, software and systems required.
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What
will happen to my data?
Whether you choose a Hosted or an ASP solution…. you retain
the ownership of your data. We can also provide regular copies on
secure digital media upon request. And in an ASP/Hosted environment
it will probably more secure than it is now.[3]
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What
about security? Will my systems be safe when they are not sitting
in my building anymore?
What level of security can you provide on your own site today?
Do you have a physically secure climate controlled Server Room?
What level of Firewall and Intrusion protection/detection can you
provide on your site? What level of device monitoring and alarming
do you have? How secure is your system against your own employees
if they become disgruntled?
With an ASP or Hosted solution you get access to the highest levels
of physical and data security for a fraction of the cost required
to invest in these yourself as you can take advantage of the economies
of scope, scale and skills of the service provider. All our technical
staff have the highest level of expertise and qualifications and
you are protected by their professionalism and desire to maintain
their reputation in the IT arena.
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Will
my data be backed up and my system virus protected etc?
With an ASP or Hosted solution you can be assured of reliable and
regular back-ups, without having to depend on someone within your
organisation remembering to insert a tape every night.
We are able to provide complete Anti-Virus protection right up
to your desktop for a modest monthly fee… Our customers who
have chosen this option have never suffered a Virus infection.
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Will
I need to make my IT staff redundant?
No. Experience shows that your IT staff become more focused on
business issues ® how to improve customer service and your competitive
edge, how to more effectively deliver critical business data and
applications to staff when and where they need it, instead of fighting
fires and doing break-fix work (What is the current % of time your
IT staff spend on break-fix versus new projects and IT business
development?).
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Why
is ExpressApps the right ASP for my business?
ExpressApps has been recognised by IDC as one of the top 5 Application
Service Providers in the country and is one of just a handful of
Microsoft Certified ASP Partners in Australia. We specialise in
the provision of expert IT engineering services and managing the
delivery of applications via Hosting and Integration services. Formerly
known as Dunson, we have been IT infrastructure providers/managers
for Small and Medium Sized Businesses for more than a decade and
have been Microsoft Certified Partners since 1995 and a Citrix Gold
partner since 1998. We have been recognised by IDC as one of the
top 5 Application Service Providers in the country and are one of
just a handful of Microsoft Certified ASP Partners in Australia. We
believe that you get the best results and the best value though
using focused specialists, and our focused specialisation is the
management and implementation of best practice IT infrastructure in
a Microsoft/Application Server environment.
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What
should I do next?
Naturally, we are in business to help our customers achieve their
business objectives with IT. We can help you determine whether an
ASP/Hosted solution is right for you or whether you need to adopt
a more traditional approach. Please contact
us for our simple,
self-assessment checklist.
If there is any way we can be of assistance, whether it's to provide
advice, fix a problem, install a new system, protect your valuable
data from intrusion or help with a major upgrade, then please don't
hesitate to call us.
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To learn more about ExpressApps or to ask any more questions about
ASP or Hosting please contact us.
[1]
The Gartner Group has extensive benchmarks for the cost of
IT all around the world. Figures vary from market to market mainly
because of differences in salaries and on-costs etc. In the USA
the split between direct and indirect IT costs is closer to 50/50.
<1>
[2]
We have many clients who use ADSL. Provided the connection
has a low contention ratio (ideally 2:1 or 4:1) the service is extremely
reliable (typical consumer grade connections have contention ratios
of 50:1 or 100:1… which means up to 100 users are contending
for the same bandwidth). <2>
[3]
Research shows that the major source of security breaches comes
from disgruntled employees with access to internal systems.
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