Most small to medium sized businesses use some type of software; whether it's for their financial record keeping, time management or day to day tasks.
Buying the software, servers, and security necessary to keep all of these records secure can really drain the budget of small companies.
Application Service Providers (ASPs) have opened up a whole new world for small businesses; they host many different applications on a remote server, called the "cloud", providing access through a secure Internet connection.
This so-called "cloud" is not a new concept; businesses and individuals alike have been using the "cloud", which is in essence nothing more than a remote server, to host websites for years.
Another common application of the "cloud" was within large corporations; a LAN, or Local Area Network, is a mini cloud.
Many large businesses would install software on their main server, and employees would access it through the LAN (i.
e.
the "cloud").
Today, cloud hosting is being used for more mundane applications within a business, including software hosting and file hosting.
Application hosting can save a company tons of money.
Software can get expensive, especially if multiple computer licenses are required.
Paying an IT department for installation and maintenance is also expensive.
Once you add on the price of servers and anti-virus software, plus the intangible cost of the risk of theft, a small business can be broke before they begin.
This is where an ASP can really help a company's bottom line.
ASPs help reduce a company's overhead; they don't need to maintain the software, indeed they don't even need to purchase the software.
All a company needs to provide is a machine to access the "cloud" over an Internet connection.
Small businesses, especially, can benefit from the services of an ASP, because they usually do not have the resources to hire an expensive IT person to deal with updates, maintenance, installation and data storages.
Hiring an ASP to host all necessary business applications will remove one potential headache from a business owner's plate, allowing him or her to concentrate on the important aspects of business.
It has been obvious for years that the future lies in the Internet; no one could anticipate the exact direction the future would lead.
Luckily, the speed at which business tools are becoming available is incredible.
A business that fails to utilize all the tools available, including new and upcoming technology, is often doomed to fail.