29
Fri, Nov
0 New Articles

ASPs: Using the Internet as an Outsourcing Platform

Analysis of News Events
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Show me something new in the computer business, and I’ll show you a new twist on an old idea. Such is the case with the latest in the Internet’s buzzword fiesta—application service provider, or ASP. The big server and application software companies reckon that after your experience with arduous Y2K upgrades and your frustration with trying to keep up with the relentless pace of hardware and software technology releases, you’re just about ready to pull the plugs on your AS/400s and go back to paper and pencil. Well, maybe it isn’t that bad. But, like most conservative AS/400 shops, you’re probably staying put until mid-2000, just to see how everything works out.

While contemplating your future strategies and how you’ll sell the next big idea to the CEO or president, think about this: To free up programming time on projects that you cannot outsource, maybe you need an ASP, a new breed of service bureau that uses the Internet to deliver access to popular enterprise resource planning (ERP), supply chain management, and customer relationship management applications. Now is the time to start thinking about how an ASP might fit into your strategy and your budget because, at the moment, ASPs are still just an idea, at least in the AS/400 market.

The idea of letting someone else run your computers is as old as the computer business. Back in the 1950s and 1960s, when computers were more expensive than any other capital equipment, people simply could not afford to buy computers, and they sure didn’t have the skills to run them. So the few companies that could buy and run early mainframes and minicomputers set up service bureaus that sold timesharing capacity to users or just simply did the work for the companies that hired them. Automatic Data Processing (ADP), for instance, still cuts paychecks and files taxes for half a million companies almost 30 years after buying its first computer.

Typically, service bureaus run either their own code or your code if you outsource to them the operations you don’t want to deal with anymore. With an ASP, the idea is to entirely ditch your applications and move to off-the-shelf applications like those available from SAP, Oracle, PeopleSoft, J.D. Edwards, Baan, and others. (Those are the top five application software vendors in the world, by rank.) You may not have a choice about which platform the ASP uses to support your company. All you will do is put Web

browsers on desktops and middle-tier servers to link users to the ASP’s servers at the other end of an Internet connection.

The fact that ASPs are now being touted by IBM, Sun Microsystems, and all the big software companies is a sign that, despite how hard the industry has tried to simplify application installation and maintenance and hardware and software upgrades, it is just too difficult for your average small and medium business. Large enterprises have the skills and the money to indulge in IT technologies, and they often try just about everything that comes on the market. But the typical AS/400 shop runs lean and mean. As ASPs enter the midrange market over the next few months, they will offer a compelling option to AS/400 customers who need to modernize their applications but don’t have the skills, time, or money to do so. It might make more sense to pay a monthly J.D. Edwards or PeopleSoft utility bill than to try to build an in-house utility yourself. One of the more aggressive ASPs, USinternetworking (USi), has just gone public with the idea of offering

PeopleSoft human resources and financials, Siebel supply chain management, and Sagent online analytical processing (OLAP) suites over the Internet. AristaSoft is peddling ASP services for J.D. Edwards’ OneWorld suite. And thinter.net is offering ASP services for Microsoft Office and Exchange as well as a few NT applications for loan origination. Soon, there will be hundreds of companies to choose from, all based on the assumption that they can leverage their experience in supporting many customers to support you.

Going to an ASP for your applications makes sense for companies that want to focus on other projects, such as e-business initiatives or application development for new lines of business. It is something to think about for core financial and human resources applications, which are essentially cost centers at most companies. Obviously, most AS/400 shops would prefer to have an ASP support their applications on an AS/400 and preferably on mirrored machines to provide high availability. Although I don’t know of any ASPs that are pushing application services running on AS/400s, it is a natural match because of the AS/400’s high reliability and scalability.

Before long, enterprising Business Partners (BPs) with smarts about AS/400 hardware and about suites of applications software will figure out that they can make more money building an AS/400 ASP utility company than they can trying to push another AS/400 box into a customer site. Hardware margins, quite frankly, stink. And hardware sales tend to be seasonal and cause great duress among AS/400 BPs. But by shifting to an ASP model, BPs will be able to generate more revenues, save their customers money, and get a predictable revenue stream as well. It’s an ideal situation, provided that ASPs become big enough to get the economies of scale in hardware purchases and experience that will be necessary for them to create sustainable businesses. The prognosis is that ASPs will be able to do some of the work you support for your company for less money and less hassle, and you should definitely think about it.

BLOG COMMENTS POWERED BY DISQUS

LATEST COMMENTS

Support MC Press Online

$

Book Reviews

Resource Center

  • SB Profound WC 5536 Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. You can find Part 1 here. In Part 2 of our free Node.js Webinar Series, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Brian will briefly discuss the different tools available, and demonstrate his preferred setup for Node development on IBM i or any platform. Attend this webinar to learn:

  • SB Profound WP 5539More than ever, there is a demand for IT to deliver innovation. Your IBM i has been an essential part of your business operations for years. However, your organization may struggle to maintain the current system and implement new projects. The thousands of customers we've worked with and surveyed state that expectations regarding the digital footprint and vision of the company are not aligned with the current IT environment.

  • SB HelpSystems ROBOT Generic IBM announced the E1080 servers using the latest Power10 processor in September 2021. The most powerful processor from IBM to date, Power10 is designed to handle the demands of doing business in today’s high-tech atmosphere, including running cloud applications, supporting big data, and managing AI workloads. But what does Power10 mean for your data center? In this recorded webinar, IBMers Dan Sundt and Dylan Boday join IBM Power Champion Tom Huntington for a discussion on why Power10 technology is the right strategic investment if you run IBM i, AIX, or Linux. In this action-packed hour, Tom will share trends from the IBM i and AIX user communities while Dan and Dylan dive into the tech specs for key hardware, including:

  • Magic MarkTRY the one package that solves all your document design and printing challenges on all your platforms. Produce bar code labels, electronic forms, ad hoc reports, and RFID tags – without programming! MarkMagic is the only document design and print solution that combines report writing, WYSIWYG label and forms design, and conditional printing in one integrated product. Make sure your data survives when catastrophe hits. Request your trial now!  Request Now.

  • SB HelpSystems ROBOT GenericForms of ransomware has been around for over 30 years, and with more and more organizations suffering attacks each year, it continues to endure. What has made ransomware such a durable threat and what is the best way to combat it? In order to prevent ransomware, organizations must first understand how it works.

  • SB HelpSystems ROBOT GenericIT security is a top priority for businesses around the world, but most IBM i pros don’t know where to begin—and most cybersecurity experts don’t know IBM i. In this session, Robin Tatam explores the business impact of lax IBM i security, the top vulnerabilities putting IBM i at risk, and the steps you can take to protect your organization. If you’re looking to avoid unexpected downtime or corrupted data, you don’t want to miss this session.

  • SB HelpSystems ROBOT GenericCan you trust all of your users all of the time? A typical end user receives 16 malicious emails each month, but only 17 percent of these phishing campaigns are reported to IT. Once an attack is underway, most organizations won’t discover the breach until six months later. A staggering amount of damage can occur in that time. Despite these risks, 93 percent of organizations are leaving their IBM i systems vulnerable to cybercrime. In this on-demand webinar, IBM i security experts Robin Tatam and Sandi Moore will reveal:

  • FORTRA Disaster protection is vital to every business. Yet, it often consists of patched together procedures that are prone to error. From automatic backups to data encryption to media management, Robot automates the routine (yet often complex) tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:

  • FORTRAManaging messages on your IBM i can be more than a full-time job if you have to do it manually. Messages need a response and resources must be monitored—often over multiple systems and across platforms. How can you be sure you won’t miss important system events? Automate your message center with the Robot Message Management Solution. Key features include:

  • FORTRAThe thought of printing, distributing, and storing iSeries reports manually may reduce you to tears. Paper and labor costs associated with report generation can spiral out of control. Mountains of paper threaten to swamp your files. Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing. Manage your reports with the Robot Report Management Solution. Key features include:

  • FORTRAFor over 30 years, Robot has been a leader in systems management for IBM i. With batch job creation and scheduling at its core, the Robot Job Scheduling Solution reduces the opportunity for human error and helps you maintain service levels, automating even the biggest, most complex runbooks. Manage your job schedule with the Robot Job Scheduling Solution. Key features include:

  • LANSA Business users want new applications now. Market and regulatory pressures require faster application updates and delivery into production. Your IBM i developers may be approaching retirement, and you see no sure way to fill their positions with experienced developers. In addition, you may be caught between maintaining your existing applications and the uncertainty of moving to something new.

  • LANSAWhen it comes to creating your business applications, there are hundreds of coding platforms and programming languages to choose from. These options range from very complex traditional programming languages to Low-Code platforms where sometimes no traditional coding experience is needed. Download our whitepaper, The Power of Writing Code in a Low-Code Solution, and:

  • LANSASupply Chain is becoming increasingly complex and unpredictable. From raw materials for manufacturing to food supply chains, the journey from source to production to delivery to consumers is marred with inefficiencies, manual processes, shortages, recalls, counterfeits, and scandals. In this webinar, we discuss how:

  • The MC Resource Centers bring you the widest selection of white papers, trial software, and on-demand webcasts for you to choose from. >> Review the list of White Papers, Trial Software or On-Demand Webcast at the MC Press Resource Center. >> Add the items to yru Cart and complet he checkout process and submit

  • Profound Logic Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.

  • SB Profound WC 5536Join us for this hour-long webcast that will explore:

  • Fortra IT managers hoping to find new IBM i talent are discovering that the pool of experienced RPG programmers and operators or administrators with intimate knowledge of the operating system and the applications that run on it is small. This begs the question: How will you manage the platform that supports such a big part of your business? This guide offers strategies and software suggestions to help you plan IT staffing and resources and smooth the transition after your AS/400 talent retires. Read on to learn: