Guide to Application Service Providers (ASPs)

Slash the costs of software and services with Web-based programs

By Frances Sharpe, freelance writer/editor

ASPs are easy-to-use Web-based programs that provide the same features as pricier software and many of the same services as outsourcing firms. ASPs lower costs by:

1. Reducing the need for high-priced IT specialists to install and administer programs.
2. Eliminating the need for costly software upgrades.
3. Eliminating the need for expensive equipment.
4. Reducing training time.

Action Steps
The best contacts and resources to help you get it done

Web hosting and email services

The ASPs most commonly used by small businesses are Web hosting and email services. These services eliminate the need for expensive servers and IT staff.

I recommend: A number of ASPs offer Web hosting and email service, including GoDaddy.com and Network Solutions.

Ecommerce storefronts

ASPs make it easy to launch an online store and save you from the costly and time-consuming development process.

I recommend: ASPs, such as MonsterCommerce.com, provide plenty of beneficial ecommerce storefront features, including shopping carts and the ability to upload products in bulk, to offer coupons and to cross-promote products.

Fax services

With an ASP fax service, you can eliminate the cost of buying a fax machine and maintaining it.

I recommend: EFax.com lets you send and receive faxes as email attachments.

Ad management

Whether you want to place banner ads on other Web sites or host ads on your site, ASPs can simplify the process — sometimes for free.

I recommend: To advertise your Web site with free banner ads on other sites, take advantage of Banner Exchange, an ASP you can download for free. If you display ads on your Web site, try an online ad management system, such as AdButler or AdSpeed, which offers a live demo and a free trial.

CRM, sales and marketing solutions

The cost of developing customized CRM, marketing or sales software is usually prohibitive for smaller businesses. But several ASPs offer the flexibility required to meet to your needs.

I recommend: EBusiness Suite offers a number of Web-based CRM, sales and marketing solutions. Sign up for a free trial of SalesForce.com, a leading CRM and sales solution. Try Campaigner Pro for your email marketing efforts.

Accounting and finance

Many small businesses outsource complicated and time-consuming accounting chores, such as payroll processing. ASPs, however, provide an inexpensive alternative to outsourcing that also lets you maintain control of your accounting processes.

I recommend: ExpensAble Enterprise expense management ASP is designed with small businesses in mind. Take a guided tour of SurePayroll's payroll services.

Inventory management

Inventory management software is notoriously expensive and can easily run into the tens of thousands, and sometimes even into the millions. But several affordable ASPs are available to help you track your inventory.

I recommend: InteractiveInventory.com is an inventory management system that facilitates order processing, tracking and receiving. Inventory Pro Online provides solutions for inventory, purchasing, shipping orders, work orders and asset management. It also allows staff, suppliers and customers to access data in real-time from anywhere in the world.

HR tasks

Streamline your HR efforts with ASPs that offer solutions for benefits administration, performance reviews, recruiting, scheduling and tracking time.

I recommend: View a live demo of Taleo Business Edition's recruiting application, which helps manage the hiring process. Find additional HR-related ASPs at FindApps.com.

All-in-one solutions

Some major providers offer a host of Web-based programs to fill all your business needs, including accounting, inventory management, sales and marketing.

I recommend: Oracle E-Business Suite is a comprehensive suite of business applications that allows you to start with as few applications as you need and add more as your business grows. NetSuite lets you run your entire business with a Web-based suite of applications.

Helpful advice for making the most of this Guide

• •  One of the benefits of ASPs is that you can access them from any computer anywhere in the world.
• •  Cost structures for ASPs vary and include pay-as-you-go models, monthly fees and annual fees. Some are free, but require you to pay for additional plug-ins or modules.
• •  To help you ramp up, most ASPs provide online training and phone support.