Every system I've worked with has either had the database stored locally or on the company network. To tell you the truth, I'd rather have a professional dealing with it outside the building as well as doing the hosting and maintenance. DeGroot says that while he has used personnel software packages from both Oracle and PeopleSoft Inc. in the past, there has been a lack of Web products designed for use by human resources specialists. Simpata's software fills that void pretty well, DeGroot says, and he thinks it's good value. Those numbers made outsourcing the application a no-brainer.
ASPs are anything but homogenous in the way they offer services.
ASPs formed to outsource applications of all sorts, such as USinternetworking Inc. and Verio Inc., are likely to handle their own secure Web hosting, authentication and encryption services. For the highest security requirements, customers may demand public key encryption, a technology that uses digital certificates to guarantee the identities of those who download and upload to the ASP network. ASPs often contract with a third party such as Entrust Technologies Inc. or VeriSign Inc. to issue the certificates in those cases, since there are so few options in the emerging and highly specialized digital certificate management arena. Simpata, which specializes in insurance and employee benefits packages and services, has outsourced its server and firewall administration to Pilot Network Services Inc., a secure hosting company. The ASP retains control of the password structure and access to the applications.