The application service provider market has developed easier access to comprehensive e-business platforms for small to medium sized enterprises.

The promise of business-to-business e-commerce has been all along that it’s not just for multinational corporations but for the little guys as well. Although many small to mid-sized companies seek to leverage the power of the Internet in their everyday operations a stumbling block to the full adoption of business-to-business e-commerce solutions has been its cost of implementation. Frankly, the purchasing of comprehensive e-commerce software platforms is, for the most part, economically prohibitive for most small firms. The bright news is that application service providers (ASPs) have stepped in to act as middlemen to help lighten the cost and make e-commerce solutions available to those buyers with an interest in web-enabled commerce but a less extravagant budget.

In a nutshell, ASPs provide their users with access to commerce solutions through their standard Internet connection allowing them to rent product development management (PDM), enterprise resource management (ERP) and customer relationship management (CRM) over their browser. By renting their e-commerce solutions, companies can trim costs that would have otherwise included licensing agreements and infrastructure reconfiguring.

But perhaps the most essential aspect of accessing e-commerce solutions through an ASP, is the speed at which the solutions are made available. Companies can set up solutions and provide integration and communication with supply chain partners within a significantly quicker time frame than when implementing complicated software.

It is a good idea for companies investigating possible ASPs to keep in mind speed and overall time-to-market when shopping for an e-commerce solution. Prospective e-commerce solution buyers would also do well to thoroughly pore over possible ASPs’ capabilities before signing into a rental agreement. An important step is to ascertain whether or not the ASP has made provisions to backup data in an ancillary power supply. This measure, known as cogeneration, entails the storing of duplicate data files in a second location to account for the event of a fire or disaster at the primary location.

Having made the proper precautions, companies wishing to jump on the B2B wagon can do so with relative peace of mind that their ASP is providing trustworthy service. Industry experts tend to agree that, for the smaller company interested in e-commerce, renting solutions from an ASP is well worth the risks.

Source: Net Gains
Thomas Ferraioli
NDX, April 27, 2001
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