Fundraising & Grants     Innovations     Internet Resources     Interns & Volunteers     Government     Special Populations     Community Resources     Training     Troubleshooting     Planning & Management

Tech News is proudly supported by IBM

The Pros and Cons of ASPs By Lisa Radcliffe Regional Director Peter Martin Associates      A primer on what agencies should ask about and consider before signing on with an Application Service Provider (ASP). What should you do if you are considering the services of an ASP to streamline your agency's functions and improve efficiencies? First and foremost, ask as many questions as possible. Ask the vendor to explain carefully in lay terms – technical jargon can confuse real issues and misdirect valid questions. It makes sense to require that the ASP provide multiple client references of similar size, configuration and requirements to your own agency. Take the time to seek out those references and ask them to describe their experiences with the ASP. Ferret out any irregularities so you can make a fully informed decision. As the saying goes, "Caveat Emptor!" The Good News Expertise ASPs may provide support for all the necessary hardware, software and services required to use your application(s) of choice. This may include: Routers Hubs and Switches Telecommunications links Servers Applications Databases Help Desk Implementation Training Custom Reports Custom integration with other applications or databases outside the primary contract. The support varies according to service provider and package. In the best case scenario, you will now have a Database Administrator, a LAN administrator, an applications specialist, a custom report writer, a programmer and a full time help desk. Of course, this level of service costs money, but it may be easier to maintain on an as-needed basis. Return on Investment Typically, the implementation process for more complex pieces of software can be arduous and expensive, requiring the commitment of both staff and consultants. Installing hardware and software can take weeks with expensive consultants and lengthy staff training; much of this can be bypassed using an ASP. Outlining business rules, procedures and definitions are also part of the implementation burden that must be met before the software becomes useful to your agency. Some ASPs specialize in the use of a particular software for a particular industry. All the necessary terminology and "rules" have been predefined. The ability to contract with this type of ASP can give you a huge advantage – your implementation cycle will be greatly reduced. Instead of defining, testing and installing the product, you can go live as soon as your staff is trained. Since software offers little or no value to your agency prior to usage, a shortened implementation cycle greatly improves your return on investment (ROI). Scalability Some ASPs will allow you to add user licenses on the fly, while others require a minimum contracted user base. A use-as-you-go scenario could allow you to add case workers and software users as you add clients and contracts, building the incremental technology cost of serving those clients into your contract rates. This way the system truly grows along with your agency's needs and you don't have to pay for technology capacity ahead of your use (again, better ROI). Even if the vendor offers it as a minimum/maximum contract, ask if a use-at-will option can be discussed.   It is critical to look for a viable, long-standing ASP business with a well-trained and stable staff. One of the greatest advantages of an ASP is that much of your implementation burden can be relieved. Possible fail-over or contingency plans include a back up XDSL or ISDN line (should your T-1 fail), or a full, current copy of your database, which can be restored to a local machine in case of emergency. Some ASPs charge up to $1,000 per download of your own data and your trouble in creating consolidated reports may still be far from over. Latency can be a factor at any point between your computer and your data.   The Bad News Access to Data If you use an ASP for a mission critical application, you must consider potential loss of access to your data. Every potential point of failure between your desktop and the ASP's copy of your data must be examined. For example, your telecommunications lines might go down or you might lose your Internet service provider connection. Also, ASPs have been known to go out of business, taking their client agencies' data with them. You should assess your risks and create appropriate fail-over plans. 1) If you lose a router or hub, do you have on-site, swappable replacements? 2) You will also need to ask about the ASP's contingency planning: what are their back up, recovery and escalation plans? 3) How often do they perform disaster drills? 4) What is your total exposure for business interruption? These decisions will be specific to your use of the application and your tolerance for potential access interruption. You must be a proactive part of the disaster and recovery plan with whatever ASP you select. A second consideration should be your agency's ability to produce consolidated reports using the ASP. For instance, do you have to report to a particular funder regarding staff and/or operating costs incurred during a particular grant period? This could involve reporting data from three different systems with different data types, each using different ASPs. Your fundraising software, with the grant information might be in a MS SQL database, while your client records might be in Oracle and your financial data might be in Pervasive SQL or Btrieve – how are you going to get access to the data in a single format and write the necessary query or report? Also, be sure you fully understand the options and cost of your exit strategy: 1) Can you port your data to another ASP? 2) If you choose to bring the application in-house at some point, what will the costs be? 3) How much downtime should be anticipated? 4) Can the ASP export a full copy of your implementation? You need to consider data, database structures, customization, reports, business rules and objects, security and users. Security and Confidentiality These are the critical questions to ask: 1) How does the ASP handle your data internally? 2) Do all ASP employees sign confidentiality statements? 3) Which employees might have access to your data over the lifetime of your contract? (This might include software developers, your account representative, help desk technicians or perhaps the Database Administrator, all of whom might have access during routine maintenance and/or troubleshooting. Any of these individuals may have reason to access, copy and examine your data.) 4) Does the ASP have a strict internal policy regarding database duplication and subsequent destruction? 5) Are there any client release or consent forms that must be signed to meet any "informed consent" standards (such as the Health Insurance Portability and Accountability Act (HIPAA) contains)? 6) How is your data separated from that of other clients? 7) What precautions have been taken? Recently, when a local ASP was questioned about its back up and recovery strategy, the senior executive responded that the Chief Technology Officer takes a full back up tape home with him every night, including all of the ASP's clients' data. Without encryption, that data is accessible from all manner of third-party applications. If this question had not been asked, a major security and confidentiality issue would not have come to light. Performance One of the chief concerns here is latency: slow downs and bottlenecks. These may occur in your local network, your telecommunications infrastructure, the Internet or on the part of the ASP. In some applications, this lag may cause the application to "time out" or fail to complete the transaction. This can be very frustrating to end-users. Short of timing out, the amount of time an end-user must wait to refresh a screen or retrieve data can be critical to his/her perception of that application. Any ASP should let you "test drive" its service before requiring you to sign on the dotted line. Run it yourself, simulating the proposed technology environment, and see what really happens. You can contact Lisa Radcliff at lradcliffe@petermartin.com. E-mail a Link to This Article Enter Recipient's E-mail:   Printer Friendly Format

Planning & Management.... An Agency Profile: Transitional Services for New York, Inc. (August, 2003) Software for Nonprofit Accounting (March, 2003) How to Accurately Plan Your Agency's IT Budget: A Workshop Synopsis (October, 2002) Would You Like To Improve Agency Communications? Develop an Intranet! (October, 2002) "Something from Nothing" - How Housing Works built a state-of-the-art IT infrastructure on a shoestring budget. (August, 2002) Making the Build-or-Buy Decision: A Thorough Analysis Before You Decide (February, 2002) Online Facilitation (December, 2001) The ABCs of ASPs (November, 2001) The Pros and Cons of ASPs (November, 2001) Using an Application Service Provider To Transform Your Agency (November, 2001) The Nonprofit Web Site: Tips for Attracting and Retaining Visitors (April, 2001) A Case Management System Case Study: Providence House (January, 2001) Covering Web Site Costs and Online Fund Development (January, 2001) I&R Best Practices: Profiles of Three NYC I&R Services (November, 2000) One To One Marketing for Nonprofits (May, 2000) Planning for Success: A Practical Approach to Technology (March, 2000) Networking for the Small Nonprofit: The Asian American Federation of New York (December, 1999) Developing a Technology Plan: Key to Getting Needed Funds (October, 1999) Should Your Organization be an E-Commerce Provider? (October, 1999) Stretch Your Technology Budget - Take Advantage of Product Donations (June, 1999) Contact Tracking That Works (April, 1999) How We're Using Information Technology to Further Our Mission (February, 1999) PeopleKnowledge: One Solution to Data Management (December, 1998) Softward Licensing: Protecting Your Organization From Lawsuits (October, 1998) Other Articles of Interest.... GuideStar: Getting Form 990 Online (October, 2001) Nonprofits Benefit from ePayments Technology (April, 2001) Paving the Way to the Future: DYCD's Comprehensive Contract Management System (January, 2001) Creating the Paperless Office (November, 2000) Globix Technology Grants Help Nonprofits Realize Operating Efficiencies (November, 2000) TECH-U-NET: Providing Technology Guidance to Nonprofits (November, 2000) Technology Technical Assistance: Why Use it, How to Manage it (May, 2000) New Web Site Facilitates Quality Program and Evaluation Planning (March, 2000) Lessons From the Life of a Learning and Access Center (December, 1999) Distance Learning and Training can be Low-Key, Low-Tech, and Low-Budget (October, 1999) If Your Computer is Looking a Little Green Around the Ears, it Might be a Virus (June, 1999) Program Donates Technology to Nonprofits (April, 1999) New York Today Offers Free Web Services for Nonprofits (February, 1999) Register Your Internet Domain Name Now (February, 1999) Diffusion Fund Enables Advanced Telecommunications for Disadvantaged. . .(December, 1998) BrookynX - A Guide to Getting Your Communities on the Net (October, 1998) Learning the FAQs: Free Education and Training for Nonprofits (October, 1998)

 

Search		Home

About Tech News     Events     Link Library     Feedback     Site Map     Subscription

Copyright © 2001 United Way of New York City - All Rights Reserved.
Privacy Policy