ASP Spotlight

What is the Right Question?

By William F. Bice

THE BIG debate in the legal marketplace exists over whether to outsource information services to an applications service provider (ASP). These are companies that deliver some, or all, software applications via the Internet. While this debate may sound technologically advanced, it is actually quite mundane and places the proverbial cart before the horse. It is akin to simply asking: "Do we put our system's server in this room or that one?"

Far more important is the need to first determine the firm's software requirements and then let the software dictate how and where it will best hosted, i.e. at an ASP or internally. Firm should begin by conducting a comprehensive analysis of software needs, including all applications that are running or required by the "front office" (matter management software, client databases, word processing applications, etc.) and the "back office" (time, billing, accounting, etc.). Integration should be a major consideration during any analysis of firm computing needs, as should interconnectivity with other firms, clients and information sources.

How Much?

To ASP or not to ASP can be debated only after assessing the firm's software requirements and gaining a clear understanding of how the applications will be used and integrated. At this point, the issue becomes: "How should I pay for getting my software applications?" There are two options: Purchasing the software and hosting it on an internal server; or, outsourcing to an ASP and leasing the software.

Some believe that outsourcing to an ASP is cost effective. However, technology is not yet advanced enough to greatly affect costs one way or the other. In fact, the costs associated with both internal and external servers are currently very similar for two reasons. Either way, an IS department is needed to manage the internal application server or supervise the Internet connections and the off-site server. In addition, software expenses don't go away -- they are either a lump sum purchase or a contracted monthly lease cost. All this may change as Internet technology continues to improve and the balances are thrown one way or the other.

Before you can determine if outsourcing to an ASP is good for your firm, you need a thorough understanding of ASPs -- what they are, how they work and the options available. ASPs come in two forms: browser-based applications and Windows terminal servers. With browser-based applications, you access software applications off the Internet with your browser. Browser-based applications either run strictly from the Web, making your desktop PC a "dumb terminal" that does not house any software, or they will download applications onto your hard drive each time you access them.

The other type of ASP is Windows Terminal Servers (WTS), which run Windows applications on a central server. This often is a more efficient arrangement. You gain access to the server through your desktop PC, just as with an internal server. The screens and programs can be the same ones that you run today, the only thing that changes is where the server is located.

ASP can be effectively used in two models: the discrete applications model and the total ASP model. With the discrete application model, one application is outsourced to an ASP, with the others residing on the internal server. The legal marketplace frequently uses this model for accessing simple time and billing applications. These firms can enter time, preview invoices and mail statements on-line.

With the total ASP model, all applications are outsourced to an off-site server. The primary file server is hosted by the ASP and all applications, front and back office, are run through Citrix.

Knowing what ASPs are and how they can be implemented is only the tip of the iceberg. Consideration must also be given to integration, security, functionality, and genuine need. Integration remains a significant issue with ASPs, whether it is integrating programs running off a variety of ASPs or integrating a discrete ASP with the software on an internal server. The technology is still in its infancy -- each ASP is an autonomous vendor and products are brand new. The atmosphere is similar to that of the software industry 10 years ago.

Back then, software applications ran independently, forcing repetitious input of data into multiple programs. In addition, immature early program versions were being offered. ASPs are currently concentrating on perfecting their initial product offerings and have not yet begun to work together towards integration. This could mean that data will once again need to be inputted multiple times and many products will still have the flaws associated with new software programs.

Most Effective

At this time, the most effective uses for ASPs are infrequently used discrete applications that do not require integration with the existing system or complete outsourcing for access to a totally integrated system.

Good examples of effective discrete ASPs are Fedex.com, for accessing FederalExpress for package pickup, delivery and tracking, and Employease.com, for accessing updated employee benefits information. In both cases, the applications are delivered via the Web and do not require integration with other office applications and functions.

Security is another concern when considering an ASP. Remember, with an ASP all program or system data is stored on an outside server. The advantage is that this information can be accessed from anywhere, at any time. Security may be an obstacle, however. ASP technology is still in its infancy, and often promoted by small start-up companies still working through immaturity issues with each product edition. Although each ASP does have a security system, the question is how mature and dependable is it. A proven industry-wide security system has yet to be established. Each ASP is implementing security in its own way and none of the methods have a track record yet. Security issues will be worked out over time as ASPs mature and gain footing.

Law offices can benefit from an ASP if the firm has a complete and comprehensive understanding of its software needs. As ASPs and Internet technology advance to the point where integration and security are no longer issues, the debate over whether to outsource will become passe. At this point, however, it is essential to consider the four realities of ASP outsourcing today: integration, security, functionality, and office software requirements. Only after all of these issues have been satisfactorily addressed can you ask the simple question: "Now where should our server live?"

William F. Bice is president of ProLaw Software, based in Albuquerque, N.M.