Using an ASP is an undeniably quick way to get an application up and running. And at least in the near term, it can be the least expensive way, too. Many ASPs will install the application, and customers have the option of rolling that cost into the monthly service fee, which is based on usage. Many ASPs offer a sliding scale so fees drop as volume grows. The ASP model also insulates customers from technology creep.
Technology moves so quickly.
Of course, there is a downside to taking the ASP path. Customers must trade internal control and the ability to customize for the speed and cost advantages of the ASP model. And it is risky to bet your business on the performance promises of third parties outside your immediate control - especially when those third parties are relying on fourth parties to provide the service. For example, nearly all ASPs partner with other companies to provide the physical data center where the applications are hosted. The lack of customization may not be a problem for a start-up that has no legacy systems and no entrenched business processes.