Application Service Providers

by Mary K. Dzurinko

21^st Century Technology

One of the "hot topic" sessions at the 2000 Special Libraries Association Conference in Philadelphia was on "Application Service Providers" or ASP. Session presenter, Carol Knoblauch of Open Text, described what an ASP is, who uses them, how they affect the integrated online library systems market, and which integrated online library system (ILOS) vendors market ASP products. Open Text, by the way, does not market an ASP product. Only about 25 people attended the session, which surprised me. Lately, ASP has received a lot of coverage in the technology and library press. In its "Automated System Marketplace" 2000 survey (April 1, 2000) Library Journal opines that, "[ASP] has the potential to change dramatically the way that libraries manage technology."

ASP

Business Week ("The Biggest Share in Shared Computing," May 22, 2000), reports that in 1995 computing industry companies' discussions centered on "the idea of running applications on a central server as a simpler and cheaper alternative to PC networks." Oracle Corp. Chairman, Lawrence J. Ellison, was especially interested in Internet access to the central server, and Citrix Systems, Inc. was already providing access over private networks. With the increased use of the Internet as a business tool and faced with the need to compete in the global marketplace, medium-sized businesses and e-commerce start-ups with small IT staffs sought cost efficient ways to manage some (human resources, financial, etc.) software applications. They saw ASP as the way to handle these types of applications, allowing in-house staff to concentrate on revenue generating customer services.

Since 1995, Internet ASP technology, or "Rent-An App," has taken off. The ASP Industry Consortium, a self-described industry "international advocacy group" started by 25 computing companies in May 1999, has grown to 645 members in one year. Software developers such as PeopleSoft and Elite and heavy hitters such as IBM, Microsoft, and Hewlett- Packard have joined the ASP market, offering individual products and packages which include software, hardware, systems integration, knowledge management, and e-commerce solutions. The analyst firm, Dataquest predicts that by 2003 the ASP market will reach the $23 billion mark.

The most clear definition of an ASP that I’ve seen is included in Robert J. Ambrogi’s March 2000 Law Technology News "Web Watch" column:

Most commonly, ASPs are Internet-based services that allow you to rent software or services on a per-use or subscription basis. The software sits on the ASP’s server, you tap into it via a simple Web connection, and your data remains stored with the ASP, available for you or anybody else in your firm.

Integrated Online Library System ASPs

I would define an IOLS ASP as a service which hosts a library’s database at a central location (a vendor site server), manages the IOLS application software, and provides hardware and software support for the application. The library’s PC acts as a thin client, i.e., it provides access to the IOLS software application via an Internet Web Browser through the library’s firewall. Data content and integrity remain under the control of the library; hardware and software application maintenance and support lies with the vendor. Initial system purchase price is paid over the period stated in the library-vendor contract, usually three years. Thereafter, the library pays a yearly maintenance, or subscription fee. Viol`a – Rent-An-App!

IOLS ASP vendors appear to fall into three groups. The first group, such as CASPR, expixtech, Innovative Interfaces, and SIMA currently market an ASP product. The second group plans to introduce an ASP product in the near future. The third group, by far the largest, is still investigating the viability of ASP as an IOLS product.

Library managers are not fully aware of the implication that emerging IOLS ASP technology has for the delivery of internal and external library services. Those who have examined ASPs view them either as a cost-effective way to use limited budgets and staff or as a further threat to the library’s independent control over data and technical services. ASP IOLS technology presents a new and challenging avenue for libraries and information centers that plan to purchase a first system or migrate to a second or third generation IOLS. As the ASP industry grows, more IOLS vendors will enter the market with ASP products which offer more Web-based system features, additional system enhancements, and interface with a wider range of Internet and electronic databases.

Outsourcing

Companies hire outside vendors to manage some operational tasks, i.e, accounting, payroll, human resources, and computer services in order to save money and generate greater profits, and to permit staff to concentrate on customer services. In the current business economy, skilled and experienced IT staff are very difficult to find and keep; therefore, businesses view ASP as an effective alternative to in-house maintenance of these tasks.

Outsourcing of library services is a very sensitive issue. However, libraries do use library services companies and independent contractors to handle individual tasks such as cataloging, filing, reference, shelving, and other special projects. An IOLS ASP is not strictly an outsourcing product, but more of a "communications/support package" through which a vendor handles software, hardware, and system support and the library concentrates on the management of data content, maintenance of database integrity, and delivery of library services.

Recent experience leads me to believe that library mangers often don’t consider ASP products when investigating the current IOLS market. Certainly, ASP is not a fit for every library. Academic, corporate, and large public and special libraries which have very specialized local requirements, need a great amount of local customization to manage collections located in multiple locations, and employ skilled system librarians on staff, may find that the ASP model is not a viable product for their institutions. However, ASP technology does have potential, particularly for libraries and information centers with limited financial and staff resources. Considering the natural tensions between library and IT staffs, ASP will minimize reliance on local IT support to resolve system problems and install upgrades in a timely manner, even in institutions which employ system librarians.

I am currently assisting a client with the installation and implementation of an ASP product and am amazed at the speed with which we were able to get the system up for beta testing. In approximately three weeks we established database tables, loaded the data, set up circulation parameters, reviewed bibliographic records, and tested the serials prediction and subscription functions. Moreover, I work on the project out of my office in Baltimore and the vendor and the library work in two large cities, each located on a different coast. If all continues at the same pace, the system will be installed, implemented, and rolled out in three months. Even in the recent past, most implementations have taken anywhere from six months to one and a half years to get up and running. Ain’t technology wonderful!!!

A Word of Advice

An ASP is a means of housing and supporting an IOLS and accessing and maintaining a database.

No matter who handles software applications, hardware, and support; no matter who manages data content:

An IOLS' features and functions remain the same whether the system resides on a vendor server and is supported by the vendor or if it resides on and is supported on a local library server site.

If an IOLS doesn’t fit your local requirements and enhance your services; if you don’t like some system features and functions; if you can’t afford to support the system within your current staff and budget parameters, don’t consider it and certainly don’t purchase it, no matter how it’s delivered or how it’s supported.

Additionally, and most importantly, every IOLS project needs a detailed implementation plan and a project timetable.

ASP Evaluation

Questions to consider when evaluating an ASP IOLS product:

• Does the system fit your local IOLS requirements?
• Does an ASP fit into your local IOLS requirements?
• Does your institution currently use any ASP products?
• Will your institution approve and support the use of an ASP?
• What level of security does the vendor support?
• What level of customer support is provided?
• Who is responsible for resolving system problems?
• Is system availability reliable, 24/7, east/west coast availability?
• How many of the vendor’s ASP products are installed and implemented?
• What level of installation and implementation support does the vendor provide?
• What software applications, such as a report writer, does the library have to install on staff PCs?
• Does the vendor assist with installation and implementation: via telephone, e-mail, CD-ROM, etc?
• Does the vendor provide on-site staff training for the IOLS modules?
• Are there any "hidden costs"?
• What is the upgrade timetable?
• How will you communicate with the vendor and will you have an assigned customer support contact?
• What are the details of the subscription fees, i.e., over what time period is the initial cost paid; by what percentage will subsequent subscription fees increase?
• Will the cost of an ASP save you money or cost you more in the long run and can you afford it?
• Will your database reside on its own server or will it share a server with other libraries’ databases? If multiple databases are housed on a server, how does the vendor ensure the integrity and security of your data?
• How will your database be delivered to you should you decide to migrate to another IOLS in the future?
• Does the vendor have a plan if, heaven forbid, the entire Web is compromised and you don’t have Internet access to your data?
• Should you hire a consultant to assist with the project?

Advantages of an ASP

• To use an ASP, all the library needs is a high-speed Internet connection and a web browser.
  N.B.: Check with the vendor about the optimum amount of memory your public and staff PCs should have to provide the quickest response time.
• The system can be installed very quickly. An ASP can be up and running in a short period of time.
  N.B.: This process may be slowed down during data load, depending on the accuracy of database bibliographic records.
• The vendor is responsible for installing the system.
• The vendor is responsible for resolving software application issues.
• The vendor is responsible for installing all upgrades.
• The vendor is responsible for providing a skilled, experienced ASP IT staff.
• The library does not need a local full-time system administrator.
  N.B.: I would advise a client to appoint a staff database administrator to act as the vendor and local IT staff contact. I would always keep my local IT staff in the loop during the installation and implementation process. In any case, your local IT staff will have to work with the vendor on firewall issues.
• The staff can concentrate on data integrity and delivery of services, as the library does not have software applications and hardware responsibilities.
• The library is able to predict and control IOLS costs more accurately, depending on the negotiated subscription fees.
  N.B : Be a savvy negotiator. Get it in writing, review all contracts, and ask lots of questions.

Disadvantages of an ASP

• Security: Database security is a major national concern and certainly an ASP concern. Discuss security issues in detail with the vendor. The vendor must break through your firewall to provide their staff Internet access to your data. You don't want give access to sensitive local information to outsiders and you want to ensure that hackers can't get in and compromise your Internet or Intranet data. The firewall monitors the traffic which leaves and enters your site. Vendors may offer Virtual Private Networks (VPN) which are gateways which use encryption codes to ensure the security of data between your network and the vendor network. VPN codes are randomly changed to prevent outsiders from breaking the codes and accessing data.
• Customization: Libraries which love to tinker with a system and Customize, Customize, Customize or, in fact, need a great amount of local customization, may not be happy with ASP. Vendors do provide some customization of bibliographic and search fields, Web pages, and local information fields, but in general, customization is limited. Supposedly, this lowers upkeep costs and we can only hope that these savings are passed on to customers. If a library requires additional customization after the initial ASP implementation, it will have to pay vendor consulting fees for this service.
• Bandwidth: Bandwidth is a critical issue. In order to provide fast Internet access, a library should have T1 or wider bandwidth communication access.
• Control: Although the library retains control of its data, it has no control over software applications, hardware, IT staff, and upgrade installations. It is very difficult to give up this control and this issue is an important consideration when evaluating ASP.
• Cost: ASP is a subscription service and fees are paid over a period of time. The library can negotiate an initial purchase price, but has no control over subsequent subscription fees. The library should determine if it can afford an ASP as a line item in future budgets.
• Reliability: There aren’t many ASP IOLS installations in libraries out there and the product has a very limited track record. Ask the vendor for references to their ASP customers.

Conclusion

E-commerce ASP technology is rapidly maturing, but IOLS ASP technology is in its infancy. ASP IOLS vendors are still in the process of discovering how ASPs can effectively manage and deliver Web-based IOLS system features and functions. The ASP model is not an answer to the resolution of the deficiencies and problems found in an IOLS, nor is it the right fit for every library. However, it is an alternative avenue for the support and delivery of IOLS software applications, and a way for smaller and medium-sized libraries to maximize staff and budget resources.

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