Table 1 highlights the basic ASP value proposition. Table 1 Highlights of the ASP Value Proposition Turnkey solutions. ASPs bundle software, hardware, and systems development, integration, and management into one offering. The result is a significant reduction in the decision making and administrative burden on a company looking for IT solutions. Predictable costs and lower up-front investment.
ASPs typically price their offerings using contractual monthly fees.
Because of the lower up-front costs, an ASP can allow a company to get into a more sophisticated software product than if purchased outright. Prices vary depending on the type of software, the level of customization, the number of users, and the length of the contract. If there is an up-front cost, it will usually relate to the implementation. The license cost and ongoing maintenance and connectivity costs are part of the monthly fee. Faster time to market.