ASP Services

In the 4th Quarter of 2000 Microsoft introduced a new program to its Certified Solution Providers called Microsoft ASP services. A new software licensing model was introduced that allows authorized MCSPs (Microsoft Certified Solution Providers) and MCPs (Microsoft Certified Partners) to rent the use of Microsoft operating systems and programs on a monthly subscription basis very similar to the traditional Internet services model used to deliver connectivity.

Application Service Providing, in and of itself, is not new. The idea of centralizing the distribution of an application is what MainFrame computing has always been about. Using the Internet to deliver Windows based applications using thin client or a web browser is a new twist, which is quickly becoming accepted as an efficient, cost effective, scalable way to deliver network applications. ASP can be any application that is delivered to the client in a web browser. The logical next step for an ISP (Internet Service Provider) is to offer ASP services. An ISP can leverage server hardware investments much more efficiently than most small businesses. By being able to share resources across several clients, the cost of thin client networking can be further reduced.

The combination of the new Microsoft ASP license model and the availability of low cost powerful server hardware allows for very competitive product and service offerings in this emerging market. The license model from Microsoft is unique in that it allows ISPs of any size to all compete on the same level. No matter what volume you achieve with Microsoft your per user price for the software is the same. This model allows for fair competition as the market in ASP is developed. The up front cost for Microsoft operating systems and programs is eliminated under the Microsoft ASP agreement. The monthly license fee replaces the traditional one time purchase of the software. This allows the ASP to only pay for software as it is rented to an end user. This model makes the use of Microsoft operating systems and programs very affordable. The Microsoft software license transfers from the ASP to the end user on a monthly basis. The ASP has a 24-month agreement with Microsoft to offer software to end-users. In turn, the ASP has a similar agreement with the end user to offer software and other services for a term of 24 months.

This model allows the ASP to offer network and software products and services to the end user in a complete package on a monthly basis. The savings to the end user is significant. With a traditional LAN the customer would need to spend money on server and station hardware, then purchase operating systems and application software, as well as incur cost for installation, configuration, and training. Under the ASP model there are still configuration and any training fees but everything else is handled through a monthly subscription agreement, which can also include the client hardware used to access the thin client ASP services. This model allows a business to expand its network very quickly. Instead of maxing out a LAN configuration the customer just adds another session to their monthly agreement. In a fraction of the time it would take to deploy a traditional LAN PC they have all the products and services they need running in a thin client session, allowing the business owner to focus on their core competency rather than IT costs.

Windows 2000 ADS (Active Directory Services) provides an excellent security infrastructure in a multi-homed company scenario. Each organization has its own unique secure portion of the system. By using a new Active Directory Feature called OU’s (Organizational Units) Companies can share hardware resources with complete confidence that their individual data and programs are completely insolated from any unauthorized use. In addition, when you combine ASP with network management the customer realizes a significant savings in the TCO (Total Cost of Ownership), while receiving superior products and services since IT resources are centralized. The ability to leverage both hardware and human resources in an ASP environment makes this new emerging market very attractive to the hi-tech ISP looking for new and better ways to deliver products and services to their clients.