Digital Signage as a Service. What works best for your company?

Today when most people think of buying software, they visualize a product delivered on a CD-ROM in a colorful yet oversized box. Along with the box comes the confusion of installing software to a desk top themselves and the realization that what they are buying will be outdated in 2 years. It is an accepted fact of using software, no matter how inconvenient it might be for the consumer.

Application Service Providers or ASP’s as they are commonly known in the software world, are pushing rapidly towards changing this mentality. These providers use the internet to deliver their software as a service to their customers. By utilizing this approach, these providers can offer customers their product without the expense or complication of traditional software applications. No longer is it necessary to purchase an application outright.

To the unsophisticated user, the ASP model may seem complex and strange but the reality is people have been using forms of the ASP for centuries. A Utility is a classic example of an Internet ASP. In this instance, it would be possible for individuals to produce power but the high cost of doing so makes doing so a poor option. And, even if a business or individual did choose to produce power, they certainly could not do it for 15 cents per kilowatt-hour. Therefore, it makes perfect sense to purchase power from the regional utility which can spread the high capital cost of the power plant across all of its customers. By doing this, the customer gets a high quality product at a reasonable cost and with the comfort that all future improvements will be passed on to them as part of their monthly fee.

The same basic structure applies to the software ASP. Customers can hold down their costs by utilizing the intellectual power and expertise of a software company without tying themselves down to an inflexible contract. In addition to this simple truth, there are several other advantages to an ASP product. Although this article is not suited for an in-depth overview of all of the benefits of an ASP application, below are some many agree are the most far reaching.

1- Pay as you go. The majority of Application Service Providers charge for their service on a monthly basis rather than incorporating a high upfront fee. This low cost of entry is a huge benefit to small business. It can often mean the difference between affording a necessary application or falling behind a competitor.
2- No ownership. The ASP owns and operates the software and essentially “leases” it to customers. This is fundamental difference between the ASP model and traditional software. Through this approach, the customer need not be concerned with future upgrades and the equipment costs associated with them. There is no expensive server equipment for customers to purchase so most ASP vendors can upgrade their product without customers knowing until they log in for their next use.
3- More Features Faster and Cleaner- Because ASP vendors control both the application and the equipment the application rides on, they can do updates to their application much quicker. This means more product upgrades over the course of the contract as well as cleaner software delivery. In other words, the code behind the application has fewer bugs because work is released in smaller chunks. And, when bugs are identified, they can be fixed quickly because the developers know which smaller projects the problems are related to. This negates the necessity of sifting through huge libraries of code as is customary with the larger releases associated with traditional software products.
4- Quick Implementation- The majority of ASP providers only need an internet browser to function. Because of this, implementation of software often involves no more than a client machine and some manipulation of internet configuration settings. In addition, the upkeep of the system is usually managed by the software vendor. This frees up internal customer resources to do tasks more focused on their core business objectives.
5- Try before you Buy- ASP Customers can often install a trial copy of a software product easily and without any upfront cost associated. This gives customers a confidence otherwise not available with purchasing traditional software. Not only can the end user become comfortable with the program, but company management can get a true feel for what the application will do for their company without the expense of a full installation.

The future of the ASP model is bright and continues to grow among companies both large and small. The benefits cover important issues each business should consider as they embark on a software purchase which will affect their company procedures. By doing so, the ASP model may be the solution you are seeking. With its low cost of entry, ease of management and unrivaled quality improvements, the ASP is certain to be around for many years to come.

About the Author: Brian Nutt has 15 years of experience in technology and entrepreneurship. He the Founder and President of Captive Indoor Media, and the architect of Codigo, their proprietary Digital Signage Software application.