Advantages and disadvantages of using application hosting

Many of my clients have asked me what exactly hosting an application means. It has an easy concept, application hosting or we can say that application hosting is a web based solution that allows customers to run software applications through the cloud periodically and is usually provided by ASP, ie.

The ASP requirement is evolving from the rising cost of specialized software, which far exceeds the price range of small and medium-sized businesses. In addition, the increasing complexity of the software has led to the maximum cost of distributing the software to end users. With the help of ASP, the complexity and cost of such software can be reduced. In addition, upgrade issues have been eliminated by the end company by assigning ASP to maintain up-to-date services, 24 x 7 technical support, physical and electronic security, and built-in support for business continuity and flexibility.

A hosted cloud system can be rented or leased on a monthly or annual basis, thus eliminating the need to purchase expensive equipment, the main reason being that most of the equipment is hosted by the service provider and all communication is routed. through this provider to and from your company’s website or websites. Setting up an application-hosted environment has an advantage in terms of operating costs, and is also easier to install, increases flexibility, and allows communication from anywhere in the world with ease.

The hosted cloud solution is very cheap to operate, and as usage and user usage increase, the cost advantage of hosted application systems simply disappears.

The next question is what does hosting mean?

Hosting is a software application distribution system in which client applications such as CRM, Location Intelligence or others are maintained and managed by a qualified service provider and provided to clients as a service via the WWW. This means that there is an application on the provider’s servers, not internal servers of client staff. Application software can be instantly accessed and shared by customer sales / marketing through a web browser.

Advantages of good solutions for hosting services:

  • No loss of security / data control

  • Easy and fast implementation and faster return on investment

  • No steep learning curves, and also provides easy use to customers

  • Reduced sales, marketing and IT support every time

  • Cheaper software and hardware costs

  • Round-the-clock maintenance, support and security

  • Automatic and frequent application software upgrades

  • Ability to implement current improvements

The biggest advantage is that customers share and access important information with all their sales and marketing teams, instead of being on their individual desktops. In addition, customers should receive: Sales and marketing on the same page, sharing similar information at all times Improved company image and customer loyalty Reduced costs and increased revenue and return on investment.

The following are some inherent disadvantages:

  • The customer usually has to accept the application as intended, as ASP can only afford a customized solution for the largest customers

  • The customer can rely on the provider to provide a critical business feature, thereby limiting control over that feature and relying on the provider instead

  • Changes in the ASP market can lead to changes in the type or level of service available to customers

  • Integration with the client’s non-ASP systems can be problematic

Assessing the security of an application service provider when switching to an ASP infrastructure can lead to a high cost, as such a firm must assess the level of risk associated with the ASP itself. Lack of proper reporting of such risk can lead to:

  • Loss of control over corporate data

  • Loss of control over the corporate image

  • Insufficient ASP security to counter the risks

  • Exposing corporate data to other ASP clients

  • Compromise corporate data