Abstract:
Application Service Providing (ASP) emerged towards the end of 90s with claims of extensive
advantages for client organizations, in particular for small and medium size enterprises (SMEs).
Notwithstanding many perceived advantages the ASP approach has not gained wide acceptance as
the new model for delivery of enterprise applications. Many of the early ASP providers have not been
able to establish a viable business model and have discontinued ASP services, or went out of business
altogether. However, some major ICT vendors have recently re-confirmed their commitment to the
application-as-service model and made large investments in Utility Computing infrastructure. What
are the long-term prospects for application servicing? Is Utility Computing a new paradigm for the
delivery of enterprise applications, or is this yet another ICT industry fad? How should user
organizations respond to these developments?
This paper follows on from earlier work of the authors [Feuerlicht, Vorisek, 2002], [Feuerlicht,
Vorisek; 2003], and gives a detailed description of the ASP approach. We then summarize both
technological and business prerequisites for successful application servicing. We argue that the
application-as-service model constitutes a viable alternative to software licensing for many
application types today, and will become the dominant method for delivery of enterprise applications
in not too distant future. End user organizations need to prepare now for this shift from licensed
software and in-house implementation towards applications delivered as services, so that they are
able to take full advantage of this new trend.
